Background

The Shield Master Fund (Shield) is a managed investment scheme that was registered in May 2021.

Keystone Asset Management Ltd (ACN 612 443 008, Australian Financial Services Licence 491477) (Keystone Asset Management) is the responsible entity for Shield. Keystone Asset Management is based in Melbourne.

Since 27 April 2020 the directors of Keystone Asset Management have been:

• Paul Chiodo (27 April 2020 – 27 May 2024)
• Ilya Frolov (27 April 2020 – 29 December 2023)
• Mark Yorston (27 April 2020 – current)
• Louie Kortesis (29 December 2023 – current)
• Maadhvi Patel (27 May 2024 – 28 August 2024)

Why did ASIC commence Court action against Keystone Asset Management and Mr Chiodo?

ASIC took this Court action to protect investor funds while its investigation continues (24-129 MR) into concerns about the management and operation of Shield and the associated risks to investors. Some of these concerns include:

• The current financial position of Keystone Asset Management and Shield is uncertain. Keystone Asset Management recently lodged audited FY2023 financial statements for Keystone Asset Management and Shield, however the auditor has disclaimed an opinion as there was insufficient information provided;
• a large proportion of the funds held by Shield have been directed to a fund which made loans to various companies associated with Mr Paul Chiodo to fund property developments; and
• ensuring there is independent oversight with respect to any payments going forward.

What is happening with my investment in Shield?

Keystone Asset Management decided to stop redemptions in Shield in February 2024. (KAM 02042024 - Notice to Members). Since that time, investors have not been able to access their funds.

On 27 August 2024, the Federal Court appointed Mr Tracy and Ms Palaghia of Deloitte as receivers and managers to the property of Keystone Asset Management in its capacity as responsible entity for Shield.

On 5 September 2024, the Federal Court made orders appointing Mr Tracy and Ms Palaghia of Deloitte as voluntary administrators in addition to their role as receivers.

Investors and creditors can contact the receivers and voluntary administrators with any queries by emailing shieldinvestors@deloitte.com.au.

ASIC is not able to provide legal or financial advice. ASIC’s Moneysmart website has information on how to choose a financial adviser.

Shield has been listed on the following superannuation (or other) platforms:

• Macquarie Wrap
• NQ Super (Equity Trustees)
• Super Simplifier (Equity Trustees)

If you have invested in Shield via a superannuation or investment platform then you can obtain information about what this means for your investment from the provider of this platform:

Important Information for investors in Shield

People wishing to provide information to ASIC are invited to contact the investigation team via email at shield.queries@asic.gov.au.

Investors and creditors can contact the receivers and voluntary administrators with any queries by emailing shieldinvestors@deloitte.com.au.

ASIC is aware that authorised representatives of the following Financial Services Licence holders have provided financial advice recommending that clients invest in Shield. If you have a complaint or require further information regarding the financial advice provided to you, you can contact the relevant licence holder listed in the table below:

If you have concerns about your superannuation or investment platform provider, you may wish to lodge a complaint with the relevant entity listed in the table below:

If your complaint is not resolved, you may wish to contact the Australian Financial Complaints Authority (AFCA). AFCA is an independent External Dispute Resolution scheme that deals with consumer and small business complaints about financial firms.

AFCA can be contacted by:

• phone on 1800 931 678, or
• lodging a complaint online at the AFCA website.

For further information in relation to resolving disputes with financial firms, please see ASIC’s Information Sheet 174. 

You may also wish to consider seeking financial advice. ASIC’s Moneysmart website has information on how to choose a financial adviser.

You may also wish to contact your superannuation trustee or Keystone Asset Management for further information about your investment.

5 September 2024 – Court appoints voluntary administrators to Keystone Asset Management

On 5 September 2024, the Federal Court made orders appointing Mr Tracy and Ms Palaghia of Deloitte as voluntary administrators in addition to their role as receivers (24-197MR).

27 August 2024 – Court appoints receivers and managers to the property of Keystone Asset Management Ltd in its capacity as responsible entity for Shield

On 27 August 2024, the Federal Court appointed Jason Tracy and Lucica Palaghia of Deloitte as receivers of the property of Keystone Asset Management (Orders).

On 28 August 2024, Keystone Asset Management’s directors appointed Scott Langdon, John Mouawad and Michael Korda of KordaMentha as voluntary administrators of Keystone Asset Management.  

On 30 August 2024, ASIC filed an application seeking orders including:

1. that the voluntary administration of Keystone Asset Management end and that Jason Tracy and Lucica Palaghia of Deloitte be appointed as provisional liquidators of Keystone Asset Management; or alternatively
2. that Scott Langdon, John Mouawad and Michael Korda of KordaMentha, the voluntary administrators of Keystone Asset Management be replaced by Jason Tracy and Lucica Palaghia of Deloitte.

The matter is listed for hearing on 5 September 2024 at 10:15am at the Federal Court.

26 June 2024 – Court appoints independent party to verify payments made from the Shield Master Fund

The Federal Court has appointed Jason Tracy and Lucica Palaghia of Deloitte to have full control of the bank accounts of the Shield Master Fund (Shield).

For more information please see ASIC’s media release 24-137MR.

18 June 2024 – Federal Court freezes assets of Shield Master Fund

ASIC has obtained interim orders from the Federal Court freezing the assets of the Shield Master Fund (Shield), a registered managed fund whose responsible entity is Keystone Asset Management.

For more information please see ASIC’s media release 24-129MR.

7 February 2024 – ASIC halts offers of Shield Master Fund

ASIC has made interim stop orders on four product disclosure statements (PDSs) for classes of units of the Shield Master Fund (ARSN 650112057) (Fund), a registered managed fund promoted by Keystone Asset Management.

For more information please see ASIC’s media release 24-018MR.

What is ASIC going to do next?

ASIC’s investigation into the conduct of Keystone Asset Management and its officers, representatives and related entities is continuing. We encourage you to check this webpage regularly for any further updates.

ASIC is concurrently investigating a number of persons and entities involved in conduct where members of the public were called and received financial advice to invest in Shield via a superannuation platform.

The fact that ASIC is investigating any person or entity, should not be construed as an indication by ASIC that the law has been broken.

ASIC will publish media releases in relation to further court proceedings as they occur.

Next court date

There is no current hearing date.

Further support is available if you need it

We understand this may be a confusing or worrying time for you.

If you are experiencing financial difficulty, you can speak to an independent financial counsellor for free by contacting the National Debt Helpline (NDH) on 1800 007 007 (9:30am to 4.30pm in your local Australian time zone, Monday to Friday). The NDH may not be able to assist with your SMSF specifically.

You can also find a financial counselling agency using the map on ASIC’s Moneysmart website.

If you are experiencing distress and would like to speak to someone, further support is available at:

• Lifeline: 13 11 14 (24 hours)
• Beyond Blue: 1300 22 46 36 (24 hours)

How can I receive further updates?

ASIC’s investigation into the conduct of Keystone, its officers, representatives and related entities in connection with the Shield Master Fund is continuing.

ASIC will publish further updates on this webpage.

Any person who is concerned they have invested in Shield or who wants to provide information to ASIC can contact ASIC’s investigation team by email at shield.queries@asic.gov.au.

Relevant Media Releases

• 24-018MR ASIC halts offers of Shield Master Fund
• 24-129MR Federal Court freezes assets of Shield Master Fund
• 24-137MR Court appoints independent party to verify payments made from the Shield Master Fund
• 24-197MR Court appoints receivers and new voluntary administrators to Keystone Asset Management