VOFF letter added to Coalition’s woes
Joining the chorus of those after the Federal Liberal Party, Victims of Financial Fraud (VOFF) has written to Treasurer Josh Frydenberg to remind him how vehemently the party objected to holding a Banking Royal Commission, and that the Trio Fraud had still not been adequately resolved.
Scott Morrison voted against the need for a Commission 26 times, then-Minister for Revenue and Financial Services Kelly O’Dwyer 23 times, and Peter Dutton, Michelle Landry, Barnaby Joyce, Bert van Manen, Ken O'Dowd, Luke Howarth and Warren Enstch 22 to 24 times each; figures the Government would want to keep quiet going into an election given the public approval for the Commission.
VOFF drew attention to O’Dwyer’s adamant stance that the Australian Securities and Investments Commission (ASIC) and Australian Prudential Regulatory Authority (APRA) had carried out their roles in regulating and licensing Trio Capital appropriately. The Commission had since flagged the regulators’ responses to misconduct as largely wanting.
The organisation said ASIC’s failures, along with a lack of guidance about fraud or weaknesses in the financial system, the Trio Fraud and the Australian Workers Union “slush fund”, and public servants’ ability to meet community standards, all resulted in the “systemic failure of the financial system”.
In light of these failings, VOFF repeated to Frydenberg its frequent cries for the victims of the Trio Fraud to receive appropriate compensation, reminding him that the victims of this misconduct were not captured in the Commission’s Terms of Reference.
“Whether its misconduct or alleged criminal misconduct in the financial sector, victimization does not constructively address serious financial crime,” the letter said.
“In regards to the scandalous events outlined in this letter, VOFF expect your support for compensation/restitution for the Trio victims over the systemic failure of the Australian Financial System and the Government agencies involved.”
AUTHOR
Hannah Wootton
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
