Equity Trustees opts out of super trustee business

Equity Trustees has decided to exit from its super trusteeship business via its subsidiary Equity Trustees Superannuation Limited (ETSL), after facing continued scrutiny over the Shield and First Guardian collapses.

Equity Trustees commenced a strategic review of its super business early this year.

It said this is part of a strategic repositioning to focus on its core corporate trustee services and trustee and wealth services businesses.

ASIC recently commenced a second proceeding in the Federal Court against ETSL, alleging failures in care, skill and diligence concerning the decision to allow members to invest in the First Guardian Master Fund.

The regulator first launched a proceeding against Eqity Trustees in August 2025, alleging failures in due diligence concerning the Shield Master Fund which oversaw around $160 million of retirement savings into Shield through its fund.

"The independent superannuation trustee model has been a driver of growth and innovation across the industry over the past decade," Equity Trustees managing director Mick O'Brien said.

"However, in the context of a shifting regulatory environment, higher operating costs and the evolving risk profile, EQT Holdings Limited concluded the business is better positioned to realise its full potential under alternative stewardship and it allows EQT Holdings Limited to prioritise investment in the areas of our business where we can drive the greatest shareholder value."

O'Brien said the decision will enable a more focused, simplified and lower risk operating model centred on the core businesses.

"We continue to see compelling long-term opportunity across our Corporate Trustee Services and Trustee and Wealth Services businesses, driven by favourable industry dynamics and the application of technology to enhance our service offering," he said.

Equity Trustees said the decision follows a strategic review of its super arm, which evaluated market dynamics, operating requirements, long term growth opportunities and shareholder value.

"The review also considered the shifting regulatory environment and evolving client needs, including two major superannuation clients currently exploring the option available to them to internalise trusteeship," it said.

A further update regarding the future of the super trustee services business is expected to be provided prior to the FY26 earnings announcement following consideration by the ETSL board.

The proposed exit of the business will result in it being classified as a "discontinued operation" in the full year financial statements of EQT Holdings Limited for the financial year ending June 2026.

With the sale of the super trustee services business, EQT expects to incur a one-off non-cash impairment charge of approximately $13 million in FY26.

The strategic review of the super trustee business, responses to regulatory notices and compliance with ETSL license conditions is expected to cost the business approximately $4.7 million in legal and advisory costs in the second half of FY26. Total expenditure on legal and advisory costs is expected to touch $6.3 million for FY26.

It also expects to incur approximately $2.2 million in legal and advisory costs in the second half of FY26 in relation to ASIC legal proceedings concerning the Shield and First Guardian Master Funds. Total expenditure on the litigation proceedings is expected to be approximately $3.2 million for FY26.