Financial Assistance to Trio's Superannuation Fund Investors
Over 5,000 victims of fraud from the collapse of Trio Capital Limited (Trio), will be compensated for their loss, following a Government decision announced today.
Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten today announced his decision to provide a grant of approximately $55 million in financial assistance to benefit the members of four superannuation funds that were formerly under the trusteeship of Trio.
"Investors in APRA regulated funds deserve to be compensated by the Government when they lose their investments through fraud or other malfeasance by super fund trustees. I’m very pleased to be able to offer Trio investors this compensation," Mr Shorten said.
The assistance to the trustee, granted under Part 23 of the Superannuation Industry (Supervision) Act 1993, is for the Astarra Superannuation Plan, the Astarra Personal Pension Plan, the My Retirement Plan and the Employers Federation of NSW Superannuation Plan (the superannuation funds).
"Based on the application from the Australian Prudential Regulation Authority (APRA)-appointed acting trustee of the four superannuation funds, ACT Super Management Pty Limited, and advice from APRA, I am satisfied the four superannuation funds have suffered an eligible loss under the Act and the public interest requires a grant of financial assistance be made," Mr Shorten said.
Previous government practice was that only 90 per cent of the eligible loss was paid under Part 23.
"The Gillard Government considers it vital that members of the community have complete confidence the framework surrounding superannuation is robust. To ensure consistency with the Financial Claims Scheme, I am pleased to announce the Government will grant assistance for 100 per cent of the eligible loss."
"The events surrounding Trio have cemented my belief that conflicted remuneration structures have no place in financial advice and underscore the need for our Future of Financial Advice reforms, which will be announced soon."
Investigations into Trio by the Australian Securities and Investments Commission (ASIC) and APRA are continuing.
The grant of financial assistance will be recovered by way of a levy on regulated superannuation funds under the Superannuation (Financial Assistance Funding) Levy Act 1993.
Superannuation fund members can obtain further information relating to their fund on Trio’s website at www.triocapital.com.au.
13 April 2011