26/09/2025

Today, Macquarie agreed to compensate members who invested in Shield via its wrap platform, committing to repay 100% of their net capital – totalling around $321 million. This is a major relief for thousands of affected investors, but thousands more Australians remain without recourse.

Shadow Assistant Treasurer and Shadow Minister for Financial Services, Pat Conaghan MP, welcomed the news but warned it does not go far enough.

“This acknowledgment by Macquarie is an important step forward. But it doesn’t erase the stress and financial pain endured by thousands of Australians – nor does it deliver justice to those excluded from the agreement,” Mr Conaghan said. “The fundamental question remains: why did the Government do nothing to prevent this?”

Legal complexities around liability in such cases are well known, and it is welcome that Macquarie is stepping up. It’s understood that payments will go to eligible members who invested in Shield via Macquarie’s Wrap superannuation platform and are expected to be completed by 30 September 2025.

However, only around 3,000 of the 12,000 Australians impacted by the collapses of Shield and First Guardian are expected to benefit from this deal.

Also announced today, the Australian Financial Complaints Authority (AFCA) has reinstated the membership of United Global Capital (UGC) – a move that opens the door for affected investors who were previously denied access to AFCA due to UGC’s deregistration. Mr Conaghan noted AFCA would begin contacting impacted individuals.

Despite these developments, Mr Conaghan said the broader failure of regulatory oversight remains unresolved.

“For more than two years, the Government has sat on the Managed Investment Scheme (MIS) review, ignoring ASIC’s warnings about inadequate regulatory powers and the rise of cold-calling operations skirting anti-hawking laws,” he said.

“The review should have been completed over a year ago. Instead, it’s been buried.”

“Could its recommendations have prevented losses from Shield, First Guardian or Lion Property Group? We won’t know until the Government releases the review.”

Mr Conaghan said these failures are not isolated, highlighting systemic issues like weak oversight, regulatory inertia, and poor transparency.

“This Government was warned – and chose not to act. While the MIS review gathered dust, consumers were exposed, and the red flags were ignored,” he said. “Had the Government acted earlier, it’s fair to ask whether some of these losses could have been avoided.”

He also criticised the silence of senior Government figures, including the Prime Minister, the Treasurer, and the Financial Services Minister, despite mounting financial harm to everyday Australians. “Compensation is important, but it doesn’t replace the need for transparency and accountability,” Mr Conaghan said.

“The Government must immediately release the MIS review and act on its recommendations to prevent more disasters like Shield and First Guardian.” “Australians deserve answers. They deserve protection. They deserve answers from their Government, and a Government that acts before damage is done.”