Federal Court rules Macquarie breached Corporations Act and AFSL over Shield failure
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The news: Macquarie Investment Management has been found to have breached the Corporations Act and its Australian Financial Services Licence (AFSL) by the Federal Court after allowing superannuation members to invest in the now collapsed Shield Master Trust.
The context: During a hearing today, Justice Michael Wheelahan said the court declared that Macquarie should have placed Shield on its watch list by 1 March 2022 when it was added to its conservative, balanced and growth investment classes in accordance with its investment governance framework.
He said Macquarie failed to conduct any additional reporting, due diligence, performance monitoring or any other follow up action. When placing Shield on various investment menus between 1 March 2022 and 5 June 2023.
The court declared that due to these failures it had contravened the Corporations Act and its requirements as an AFSL holder. The court ordered Macquarie to pay the Australian Securities and Investments Commission’s costs.
What they said: “At all times between 1 March 2022 and 5 June 2023 the defendant failed to do all things necessary to ensure the financial services covered by its AFSL were provided efficiently, honestly and fairly,” Wheelahan said.
The source: Federal Court hearing
