The Australian Securities and Investments Commission (ASIC) has identified regulatory gaps that need to be closed to protect consumers in the wake of the $1 billion collapse of the Shield and First Guardian master funds.
Commissioner Alan Kirkland said ASIC’s enforcement priorities included holding those responsible for the collapses to account.
“With more than 11,000 investors impacted and close to $1 billion of retirement savings put at risk, it’s the most egregious example of consumer harm that I have seen in my time at ASIC,” Kirkland said in a speech to the Professional Planner Researcher Forum.
He said a long chain of participants were culpable, including lead generators like data brokers and telemarketers, financial advisers and financial advice firms, superannuation trustees like Macquarie, Equity Trustees, Diversa and Netwealth, research houses, auditors and the fund operators.
“The failures involved in Shield and First Guardian have highlighted some potential regulatory gaps across that chain,” he said.
These included regulation of lead generators, super switching, obligations of super trustees who provide platform products and regulation of managed investment schemes.
ASIC had commenced proceedings against Macquarie, Equity Trustees, Interprac Financial Planning and SQM Research, with Macquarie committed to repaying investors in full.
The corporate regulator had 10 separate Federal Court proceedings against 18 defendants, with more to come as investigations continued.
“We welcome the Government’s commitment to exploring sensible reforms that can better protect consumers in the future, and we’re committed to working with the Government to identify what would be most effective, based on what we’ve learned during our investigations to date,” Kirkland said.



