As the corporate watchdog looks to take superannuation trustees to task over the collapse of Shield Master Fund, the first target has fired back with Equity Trustees Superannuation (ETSL) confirming it will defend itself against allegations of failed oversight.
Equity Trustees, part of EQT Holdings (ASX: EQT) which has a market capitalisation of $740 million, oversaw the investment of approximately $160 million worth of retirement savings that went into Shield over 2023 and 2024.
The Australian Securities and Investments Commission (ASIC) announced on 26 August it had filed civil proceedings against ETSL as part of broader efforts to protect members’ superannuation savings.
The legal proceedings commenced around one month after Slater and Gordon Lawyers revealed it was investigating a potential class action on behalf of thousands of investors who had lost a collective $1.2 billion in superannuation savings to alleged Ponzi schemes involving First Guardian Master Fund and Shield Master Fund.
Equity Trustees took 10 days to carefully consider ASIC's statement of claim and reached the conclusion it would defend the allegations, including that it failed to meet due diligence and monitoring standards that the regulator believes should apply when a superannuation trustee makes a new investment product available, or permits increased exposure to an investment product.
Equity Trustees managing director Mick O'Brien says the ETSL board is "committed to acting in members' best financial interests and takes its compliance obligations seriously".
"ETSL understands the deeply distressing circumstances for those affected by the misconduct of now banned financial advisers and allegedly fraudulent promotes, responsible entities and managers, and continue to provide access to counselling and wellbeing support and information," says O'Brien.
"ETSL believes that it has acted in line with its fiduciary duties obligations under the Corporations Act and Superannuation Industry (Supervision) Act.
"ETSL will continue to assist the liquidators of Shield to achieve the best possible returns for members from the liquidation process."
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