Australian news, Macquarie Group to repay $211 million to thousands of individuals whose retirement funds were lost when an investment fund known as Shield Master Fund collapsed. The Australian money watchdog group stated on Thursday that nearly 3,000 customers invested their pension savings in this dud investment via Macquarie in 2022 and 2023. Macquarie is being sued by the Australian Securities and Investments Commission because it did not monitor the risky fund closely enough.
Sarah Court, an ASIC employee, said that people believed that their retirement funds were secure when they invested their funds through Macquarie’s pension system into Shield. Shield, however, was a newly formed fund with no track record of generating income. According to the government team, Macquarie should have closely monitored Shield since it was new and high-risk. This is already the second time this year that ASIC has faulted Macquarie.
Bank Promises to Return All Money by Next Tuesday
Macquarie issued a statement announcing that it will repay every dollar people lost when Shield collapsed. Everything will be repaid by next Tuesday. Then Macquarie will attempt to recover some of this money from the remnants of Shield, but they claim this will take decades. Shield Master Fund was closed in 2024, and ASIC is investigating how it treated retirees’ funds.
Shield was among hundreds of investment options that individuals could select from on Macquarie’s platform through their advisors. Most individuals who invested believed they were being cautious since they trusted the Macquarie brand. ASIC stated it will not be fining Macquarie additional funds since the bank assisted with the probe, and it is more crucial to return people’s funds as soon as possible.
Macquarie Has Had Problems All Year
This Shield issue is the second significant court battle between ASIC and Macquarie since May. Earlier this year, ASIC sued the bank too, alleging it reported incorrect information regarding 1.5 billion share trades in the last 15 years. It is the fourth time ASIC has taken court action against Macquarie in one year, indicating the bank has been having a lot of issues with complying with the law.
ASIC announced Macquarie has committed to behaving better when it comes to monitoring investments on its platform. It was committed as part of a settlement with another government organization known as the Australian Prudential Regulation Authority. The government chose it would be better to return customers’ money quickly rather than dedicate years in court attempting to punish the bank.
FAQs
1. How much will Macquarie repay?
Macquarie will repay $211 million to nearly 3,000 customers.
2. When will individuals receive their money back?
Macquarie has informed that everyone will receive their money back by Tuesday.
3. What was Shield Master Fund?
It was an investment fund on Macquarie’s platform that invested all the customers’ money and closed down in 2024.
4. Is Macquarie in trouble prior to this year?
Yes, ASIC has brought legal action against Macquarie for the fourth time within one year.
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