APRA accepts enforceable undertaking from former Trio director

australian-prudential-regulation-authority/government-and-regulation/enforceable-undertaking/director/trustee/superannuation-industry/investment-manager/

3 November 2011
| By Andrew Tsanadis |
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The Australian Prudential Regulation Authority (APRA) has accepted an enforceable undertaking (EU) from former Trio Capital Limited director David O'Bryen, the fifth director to do so since the investigation began into Trio's collapse in 2009.

O'Bryen was a non-executive director with the company and a member of the Risk and Compliance Committee from December 2007 to December 2009. As part of the EU, APRA stated that O'Bryen has undertaken not to act as a trustee or as a responsible officer of a body corporate that is a trustee, investment manager or custodian of an APRA-regulated superannuation entity for a period of five and a half years.

According to APRA, among other concerns, O'Bryen failed to redeem existing investments in offshore hedge fund Exploration Fund Limited (EFL), failed to redeem existing investments in the Astarra Strategic Fund (ASF), and made ongoing investments in the ASF.

APRA also had concerns that he caused the Trio superannuation entities' interests in the EFL to be transferred to the ASF, which resulted in the super entities assuming the counterparty risk and other risks associated with the investment structure of the ASF. 

The acting trustee appointed to the Trio superannuation entities, ACT Super Management, has determined that the investments made to the ASF have been lost due to fraud or theft, the regulatory body stated.

"The enforceable undertakings prevent each of the former Trio directors from holding senior roles in the superannuation industry," said APRA deputy chairman Ross Jones.

Jones said the investigation was ongoing and APRA was continuing to take action against other former company directors who failed to meet regulatory standards.

APRA has previously accepted EUs from former Trio directors Natasha Beck, Rex Phillpott, David Andrews, and Keith Finkelde since beginning its investigation into Trio in December 2009.

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