ASIC alleges that Equity Trustees did not obtain critical information before onboarding First Guardian, such as its constitution, audited financial accounts, or an audit of its compliance plan. Furthermore, ASIC claims that Equity Trustees allowed its members to invest 100% of their funds in First Guardian despite evidence it was or may have been illiquid.
ASIC is seeking compensation for members for losses resulting from the alleged failures by Equity Trustees in relation to First Guardian, as well as declarations and civil penalties. This legal action underscores the importance of thorough due diligence and compliance in the financial services sector to protect investors.
For superannuation members and investors, this case highlights the necessity of understanding where and how their funds are invested. It also serves as a reminder to stay informed about the practices and compliance standards of financial institutions managing their investments.
Please Note: If this information affects you or is relevant to your circumstances, seek advice from a licensed professional.
