Sarah Court, ASIC's Deputy Chair, emphasised the obligations of superannuation platforms when hosting investment funds. Particular attention is being directed at Macquarie and Equity Trustees, which are under investigation for offering Shield as an investment option and possibly influencing investors by their perceived reputations.
Court highlighted that many investors may have been misled into believing their investments were secured by brands such as Macquarie, unaware of their exposure to complex products like the Shield Master Fund. The presence of branding on investment documents contributed to this misconception, prompting ASIC's ongoing investigation into potential accountability breaches by these super platforms.
The rapid investment growth into Shield and First Guardian products raised further concerns. ASIC's inquiry aims to establish whether trustees performed necessary due diligence before placing these funds on their platforms. Moreover, even in the absence of explicit obligations, the significant influx of investments should have signalled a red flag, warranting further scrutiny by these platforms.
ASIC argues that trustees potentially have a duty to scrutinise abnormal investment flows to protect investors, which could lead to substantial regulatory actions.
