SEAS Sapfor victims to be compensated $80 million

30 September 2019
| By Laura Dew |
image
image
expand image

In a long-awaited ruling, Australian Executor Trustees is expected to be ordered to pay $80 million in compensation plus costs to victims of the SEAS Sapfor forestry scheme.

On 27 September, the Supreme Court of New South Wales ruled in favour of David Kerr in his capacity as additional trustee of the SEAS Sapfor forestry scheme on behalf of the covenant-holders.

The SEAS Sapfor scheme invested in timber on behalf of covenant-holders but investors ended up losing the entirety of their investment.

Australian Executor Trustees was formerly owned by IOOF until it was sold to Sargon last year.

Litigation funding company IMF Bentham’s investment manager, Oliver Gayner, said: “Naturally we are delighted on behalf of the covenant-holders that the injustice they have suffered has been recognised by the Court, and the trustee whose sole job was to protect their interests has been found liable to pay them compensation.  Given the Court’s clear and unambiguous ruling we hope the matter can now be quickly and finally resolved in the interests of all stakeholders.”

Simon Morris, partner at commercial law firm Piper Alderman, said: “This is a hugely satisfying and long-awaited outcome for covenant-holders who, as found by Justice Stevenson, have been let down by the professional trustee they entrusted to protect their investment.

“For lawyers and corporate trustees this decision will rebound for the things it says about the responsibilities of corporate trustees, their advisers and equitable compensation. There are salutary lessons here for corporate trustees about the consequences of their failures when but for their breach a loss would not have been suffered.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago