ASIC takes Equity Trustees to court over alleged super law breaches
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The news: ASIC has brought Equity Trustees Superannuation to the Federal Court alleging failures in care, skill and diligence regarding its decision to allow members to invest in the First Guardian Master Fund.
The context: ASIC accused Equity Trustees of contravening sections 52 and 52B of the Superannuation Industry Act 1993 by failing to obtain crucial information before onboarding First Guardian. The regulator alleges the trustee allowed members to invest 100% of their funds in First Guardian despite evidence that the fund was illiquid.
ASIC is seeking member compensation for losses resulting from the alleged failures, alongside declarations and civil penalties.
The regulator said around 2,700 members of NQ Super & Pension invested more than $65 million in First Guardian between June 2023 and March 2024.
What they said: “Superannuation trustees play a critical role helping their members save for retirement, but we allege Equity Trustees failed to put the interests of their members first,” ASIC deputy chair Sarah Court said.
“This is the second action we’ve taken against Equity Trustees and the fifth against a super trustee as part of our First Guardian and Shield Master Fund investigations,” she added.
The source: ASIC
