Compensation payments to more than 5300 superannuation fund members with investments in the Trio Capital Limited (Trio) managed investment scheme, the Astarra Strategic Fund, began this week.
Those investors affected by Trio’s demise can expect to start seeing their share of more than $54 million.
Money will be progressively credited to member’s superannuation accounts over the next two weeks.
“This is a good outcome for the 5358 people in APRA regulated funds who were defrauded of their superannuation in the collapse of Trio,” Minister Bill Shorten said.
“I want to thank the Member for Thorsby and the Member for Cunningham who both made strong representations on behalf of their many constituents who were robbed of their savings by Trio.
“I also want to thank APRA for their hard work. The Government is reviewing future compensation arrangements.”
The financial assistance is available to the members of four Australian Prudential Regulation Authority (APRA) regulated superannuation funds that were formally under the trusteeship of Trio.
The assistance, granted under Part 23 of the Superannuation Industry (Supervision) Act 1993, is for members of the Astarra Superannuation Plan, the Astarra Personal Pension Plan, the My Retirement Plan and the Employers Federation of NSW Superannuation Plan.
“The time it has taken to finalise payment to members reflects the inherent complexities of the Trio case, including the need to re-calculate member balances to replace the fictitious Trio returns with an alternative unit price based on a fair and reasonable return,” Shorten said.
According to the Australian Securities & Investments Commission (ASIC), Trio invested some assets of the funds into a managed investment scheme, Astarra Strategic Fund.
Most of its assets were directed into hedge funds located in the Caribbean.
“There is little, if any, credible evidence that the purported investments were actually made, or if they were, that they have any realisable value,” said an ASIC statement.
Most of the assets invested were subsequently lost.
As a result, in December 2009 APRA appointed an acting trustee and ASIC suspended Trio’s licence as a fund manager.
Some remaining funds were transferred to AMP’s SignatureSuper as part of successor fund arrangements in late 2010.
Investigations into Trio by both ASIC and APRA are continuing and the Parliamentary Joint Committee on Corporations and Financial Services is conducting an inquiry into Trio.
Superannuation fund members or their advisers can obtain further information relating to the payment process on Trio’s website at www.triocapital.com.au or by calling the following numbers:
- Astarra Superannuation Plan and Personal Pension Plan – 1800 064 694
- Astarra Superannuation Service – 1300 616 898
- My Retirement Plan – 1300 367 111
- Seagrims Retirement Plan – 1300 233 151
- AMP can be contacted on 1300 506 445
