No further compensation for Trio direct and SMSF investors
Collapsed Trio Capital direct and self-managed superannuation fund (SMSF) investors not covered by the compensation framework will not be provided further compensation, according to Assistant Treasurer Kelly O'Dwyer.
O'Dwyer said the Government had already provided $71.1 million in compensation to eligible investors but neither of the groups of investors were covered by the compensation framework under the Superannuation Industry (Supervision) Act 1993 (SIS Act).
"Because they are not covered by the SIS Act, in good faith the Government considered whether there were any other relevant contributing factors to the losses suffered by these investors, which would call for compensation to be paid," she said.
"The Government considered the action taken by the financial regulators, ASIC [Australian Securities and Investments Commission] and APRA [Australian Prudential Authority], and is satisfied that in relation to the collapse of Trio, both regulators carried out their roles and responsibilities appropriately, in accordance with the law and the regulatory framework."
O'Dwyer noted that a third group of investors had been advised that the Government could not consider compensation under the SIS Act because no application for compensation had been made by the trustee of the super fund.
Trio collapsed in 2009 and there have been five official reviews regarding Trio, or aspects of the collapse over the last six years.
Recommended for you
The board of Insignia Financial has reached a decision regarding the possible acquisition of the firm by US private equity giant Bain Capital.
Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses.
There has been a 16.3 per cent rise in the wealth of Australian billionaires this year to over $200 billion, UBS finds, as Australian advisers shift their offerings to meet this expansion and service their unique needs.
AZ NGA is looking to triple in size over the next five years as US investment giant Oaktree completes its $240 million investment in the professional services company.
