$480m + 5800 consumers – the looming Shield CSLR cost

Mike Taylor

Managing Editor and Publisher

10 July 2025

While the Dixon Advisory collapse continues to weigh on the cost of the Compensation Scheme of Last Resort (CSLR) financial advisers have been reminded of the looming costs associated with the Shield Master Fund.

In announcing the banning of two advisers involved in providing advice to clients in the Shield Master Fund, the Australian Securities and Investments Commission (ASIC) reiterated the financial dimensions of the Shield fall-out.

Right now, according to ASIC, that financial fall-out is sitting at $480 million and involves at least 5,800 consumers.

To judge what impact this will have on the cost of the CSLR under current funding arrangements it is worth remembering that more than 2,500 people had lodged complaints with the Australian Financial Complaints Authority (AFCA) with respect to Dixon Advisory.

It was then estimated that each complaint approved by AFCA would then end up costing around $120,000.

The bottom line is that, depending on how many of the 5,800 consumers noted by ASIC as affected by Shield actually file a successful complaint with AFCA the flow through to the CSLR may well exceed the impact of the Dixon Advisory collapse.

Further, what ASIC’s announcement of the banning of two advisers in relation to advice around the Shield Fund makes clear is that there can be no doubting that the costs can and will be fully apportioned to the financial advice sub-sector.

ASIC’s investigation into the Shield Fund is ongoing with the regulator stating that, to date, it suggests that potential investors were called by lead generators and referred to personal financial advice providers who advised investors to roll their superannuation assets into a retail choice superannuation fund and then to invest part or all their superannuation into Shield.

ASIC is investigating the circumstances surrounding Shield. ASIC is investigating Keystone Asset Management Ltd (in liquidation) (the responsible entity for Shield) and its directors and officers, the role of the superannuation trustees, certain financial advisers who recommended investors invest in Shield, the lead generators, and others.