Macquarie to repay Shield investors in full by September 30

ABC NEWS (Australia)

Banking giant Macquarie has committed to repaying thousands of Australians who invested their retirement savings into the now-collapsed Shield master fund via its platform. The corporate watchdog has also put other superannuation funds on notice following the demise of Shield and another investment scheme called first guardian.

Transcript

00:00Macquarie is a big bank.

00:03Sahar Ghali was convinced by a financial planner to move about $100,000 of her super

00:09into an investment fund on the Macquarie platform.

00:12But just the pressure to sign, quick, quick, quick, quick.

00:14When I logged in I saw that it was in Shield and I thought, oh my goodness, now there's

00:18trouble.

00:19The Shield Master Fund collapsed and Macquarie has now agreed to repay 3,000 investors that

00:24used its platform.

00:26They'll receive $321 million after the banking giant failed to place Shield on a watch list

00:33for hide and monitoring.

00:35Macquarie won't face a civil penalty.

00:37We took the view that the public interest here warranted getting that money back now.

00:42Macquarie Group said payments to investors will be made in full by the 30th of September and

00:48its decision recognises the scale of the issue, its material impact on many investors and their

00:54limited access to recourse.

00:56The corporate watchdogs put other superannuation funds on notice, taking action against equity

01:02trustees for its role in the Shield case.

01:05NetWealth and Diversa are also in its sights after the collapse of another fund, First Guardian.

01:10Superannuation funds have to be applying far more scrutiny to the products that they put

01:16on their shelves.

01:17The collapses of the Shield and First Guardian schemes have exposed deep holes in Australia's

01:23$4.3 trillion superannuation system.

01:26The federal government is now considering policy changes to ensure the same thing doesn't

01:31happen again.

01:32I think we need to look at ways in which we might strengthen regulatory arrangements in

01:37particular areas.

01:39Which comes a little too late for investors like Sahar who have endured a stressful ordeal.

01:46in the world of giants.

01:48But if you can see the next thing, there is a fall upon the top of investors.

01:53If you can see the numbers, you'll notice that you can see.

01:55How are you entering the decision?

01:58Have you entered theGG?

01:59What will we think of?

01:59You can see the numbers, then you can see it or what you can see in the next generation.

02:02Is there something that you can see in the future?

02:03The point is there.

02:04You have a lot of people who have taken 2 years from today.

02:07You can see that they'll not be taken care of or not.

02:09You can see anything.

02:10And then you can see the numbers.

02:11You can see whether you are not feeling that you can see any better about them.

Category

Transcript

Be the first to comment

Recommended