BFM to hand over approved trustee status
The Australian Prudential Regulation Authority (APRA) has forced Beacon Funds Management (BFM) to transfer the funds under its trusteeship to a new approved trustee.
The move follows an investigation by the regulator which found BFM had breached the minimum capital requirement needed to be an approved trustee.
Under APRA guidelines, approved trustees are required to hold $5 million in capital, or have other equivalent backing.
As reported byMoney Managementearlier this month, BFM has incurred substantial losses from trading in derivatives since June 30, which led to a significant decrease in its capital position.
BFM is the trustee of a variety of public offer funds including pooled superannuation trusts and master trusts, corporate superannuation funds, and a number of small APRA funds.
APRA has accepted an enforceable undertaking from BFM which allows it to continue as the trustee of the funds in its care until an orderly transfer to another trustee can be arranged.
The deadline for all entities to be transferred to a new trustee is November 15, 2002.
The undertaking also provides for the BFM, in consultation with ASIC, to fully inform members about development with the group.
BFM is also required to report to APRA in the form of weekly updates and an independent confirmation that it remains in a positive financial position.
BFM is not associated in any way with Kevin Wyld or Beacon Investment Management Services.
AUTHOR
George Liondis
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