Macquarie to repay A$321m to Shield investors after breach, ASIC says

Macquarie Investment Management has agreed to repay A$321 million to thousands of Australians who invested retirement savings in the collapsed Shield Master Fund, after admitting it breached its obligations and following regulatory action by the corporate watchdog. The settlement, announced this week, will cover about 3,000 of the nearly 6,000 people who placed superannuation money into the A$500 million fund between 2022 and 2023, and Macquarie has pledged to complete payments by September 30.

The payments follow findings that financial planners using Macquarie's wrap platform channelled A$321 million of clients' savings into Shield. Macquarie admitted it failed to act honestly, efficiently and fairly when it did not add Shield to a warning list despite concerns about the fund's rapid growth from under A$40 million to A$500 million in roughly two years. To implement the repayment, Macquarie will purchase investors' holdings in Shield at current fair value, based on estimated ultimate recoveries from the liquidation process.

The Australian Securities and Investments Commission has launched proceedings in the Federal Court against Macquarie Investment Management Limited but said...