ASIC's ongoing investigation into the scheme and its operators aims to address mismanagement and protect investors, with a focus on the fund's collapse and related misconduct.

The settlement includes a court-enforceable undertaking from Macquarie to ensure full repayment of investors' funds, with the company purchasing holdings at their current fair value based on liquidation estimates.

The compensation scheme will be implemented by September 30, with Macquarie purchasing investors' holdings at fair value, and the liquidation is expected to recover about 70 cents on the dollar, roughly $220 million.

The $500 million Fund collapsed in 2023 after being promoted through Macquarie's platform, with allegations that misleading advice and poor monitoring contributed to its downfall, affecting thousands of investors.

ASIC does not seek civil penalties from Macquarie, emphasizing that the settlement aims to restore investors to their original financial positions and acknowledges the company's cooperation.

ASIC has accused Shield and First Guardian of mismanaging investor funds, spending on personal luxuries, and paying excessive commissions, while about 1,800 investors through Equity Trustees are not covered by the current settlement.

Macquarie will pay investors 100% of their original net capital invested, less withdrawals, with payments expected before the end of September 2025, and plans to recover about $220 million from liquidation.

The Shield Master Fund was initially offered to financial planners between 2022 and 2023 but was removed amid concerns over its rapid growth from under $40 million to $500 million within two years.

The company admitted to breaching the Corporations Act, prompting ASIC to initiate proceedings, and the outcome aims to provide certainty and mitigate significant losses for affected investors.

Macquarie Investment Management has agreed to pay $321 million to approximately 3,000 Australian investors who lost their retirement savings in the collapse of the Shield Master Fund, which involved around 6,000 investors and caused losses of about $1.2 billion.

ASIC has filed proceedings against Macquarie in the Federal Court, accusing the company of breaching the Corporations Act by failing to place the Shield Master Fund on a watch list for heightened monitoring.

Investors will not be compensated for potential earnings lost during the period their funds were frozen since February 2024, but payments are scheduled to be completed by September 30, 2025, to avoid lengthy bankruptcy proceedings.

Macquarie admitted to breaching its obligation to act honestly and fairly by not warning investors about concerns regarding the fund, which contributed to the losses.