Government grants for Trio super victims
Over 5,000 victims of fraud from the collapse of Trio Capital Limited (Trio), will be compensated with a grant totalling around $55 million announced by the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten.
The funds will be distributed through the four superannuation funds that were formerly under the trusteeship of Trio.
Mr Shorten said that investors in APRA regulated funds deserved to be compensated by the Government when they lose their investments through fraud or other malfeasance by super fund trustees.
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.
Mr Shorten said the Government considers it vital that members of the community have complete confidence the framework surrounding superannuation is robust, and to ensure consistency with the Financial Claims Scheme, was granting assistance for 100 per cent of the eligible loss.
He said the events surrounding Trio had confirmed his belief that conflicted remuneration structures have no place in financial advice and underscored the need for the Future of Financial Advice reforms, currently under development.
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.