Tougher regulations to clamp down on dodgy superannuation funds are being flagged by the federal government in the wake of the Shield Master Fund collapse.

Macquarie Group has agreed to pay back in full $321 million to 3000 members of Shield, a subsidiary of the investment bank, by tomorrow after it was sued by the Australian Securities and Investments Commission.

Macquarie admitted it did not act efficiently, honestly and fairly by failing to place Shield on a watch list for heightened monitoring.

The move by the corporate regulator was welcomed by Assistant Treasurer Daniel Mulin who said he was working with ASIC on reforms to make it tougher for shonky funds to be licensed.

"As minister I am also engaging regularly with ASIC, my department, and with key industry stakeholder groups

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