Equity Trustees (ASX: EQT), a company established in 1888 providing independent Trustee and Executor services, has announced that the Australian Securities and Investments Commission (ASIC) has filed civil proceedings in the Federal Court against its subsidiary, Equity Trustee Superannuation Limited (ETSL), concerning the Shield Master Fund. Equity Trustees operates as Australia’s leading specialist trustee company, offering services such as asset management, estate planning, and superannuation trustee services. ASIC’s claim alleges failures in ETSL’s due diligence, monitoring, and testing standards when making a new investment product available on a superannuation platform.
According to ASIC, ETSL did not adequately ensure the suitability of the Shield Master Fund for superannuation members and their financial advisors. The regulator claims that ETSL failed to meet the expected standards when permitting increased exposure to the investment product. ETSL has received copies of the court documents outlining the details of ASIC’s claim and is currently reviewing the allegations.
Equity Trustees assures that ETSL is carefully considering ASIC’s claim and will provide a substantive response in due course. The company emphasises its full cooperation with ASIC’s investigations to date and its ongoing support for impacted members through efforts to maximise recoveries from the liquidation process. Equity Trustees is also offering confidential counselling and wellbeing support to affected members.
Managing Director Mick O’Brien stated that Equity Trustees recognises the challenges faced by impacted individuals, reiterating their cooperation with ASIC’s investigation and careful review of the claim. He affirmed the company’s commitment to compliance and robust processes to uphold the best interests of members. Equity Trustees has pledged to keep the market informed of any further developments in accordance with its disclosure obligations.
