Over 600 Illawarra 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.
Federal Member for Cunningham, Sharon Bird, said “I’ve seen first-hand how badly people have been affected by the collapse of Trio and have spent a lot of my time helping constituents put their case. I’m very glad to see the Government has helped the people affected in region.”
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.
“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,” Mr Shorten said.
Previous government practice was that only 90 per cent of the eligible loss was paid under Part 23.
Federal Member for Throsby, Stephen Jones, said “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 say the Government will grant assistance for 100 per cent of the eligible loss.”
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.