ASIC moves in on negligent super fund
The Australian Investment and Securities Commission (ASIC) has begun court proceedings after an investigation into losses incurred by the Employees Produc-tivity Award Superannuation Fund (EPAS).
The Australian Investment and Securities Commission (ASIC) has begun court proceedings after an investigation into losses incurred by the Employees Produc-tivity Award Superannuation Fund (EPAS).
The civil case in the Queensland Supreme Court has been brought by the regulator against EPAS Limited, its directors and the 1995-1996 auditors of the fund, for which EPAS acted as trustee.
ASIC is seeking damages of more than $10 million, plus interest, to be returned to the 26,000 members of the public industry superannuation fund.
The regulator is alleging that between 1994 and 1999, EPAS and its directors ap-proved the investment of fund assets into mortgage loans which were imprudent investments or did not comply with regulations relating to superannuation funds.
ASIC is also claiming that Gold Coast auditors Head, Cheel, Thompson were neg-ligent in the preparation of the 1995 and 1996 EPAS fund audits and did not com-ply with Australian Accounting Standards.
EPAS resigned as trustee in May 1999 after members accounts were frozen in August 1998 to minimise any further losses to the members who may lose up to 51 per cent of their entitlements.
The case is also receiving support from the Australian Prudential Regulation Authority (APRA) and the Trust Company Superannuation Services Limited, working to ensure existing funds are protected.
AUTHOR
Jason Spits
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