Regulatory Alerts2025-11-13
ASIC sues SQM Research alleging misleading reports related to Shield
ASIC has launched civil penalty proceedings in the Federal Court against SQM Research, alleging the firm issued misleading 'Favourable' ratings for the Shield Master Fund due to inadequate due diligence and process failures. The regulator asserts that SQM Research misrepresented its assessment basis and understated related-party fund management, thereby failing to act as a reliable gatekeeper for approximately 5,800 investors who relied on these reports for superannuation decisions. This action marks the first time ASIC has taken enforcement measures against a research house, seeking declarations and penalties for contraventions of the Corporations Act and ASIC Act.
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