Superannuation Alert - 30.10.13

Financial Services eBulletin - 30 October 2013

Summary

The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.

  • On 17 October 2013, APRA issued a Media Release, APRA media release 13.33, announcing that it has accepted an enforceable undertaking from former Trio Capital Limited director Kurt Groeneveld. Trio was formerly the licensed trustee of registered superannuation entities and the responsible entity of various managed investment schemes. APRA said Mr Groeneveld, who was a non-executive director of Trio from November 2005 to April 2007, prior to Trio's collapse in 2009, had acknowledged APRA's concerns that he may have contravened the Superannuation Industry (Supervision) Act by failing to carry out his duties properly as a director of a superannuation trustee. APRA said Mr Groeneveld has undertaken not to act as a trustee or as a responsible officer of a body corporate that is a trustee, investment manager or custodian of an APRA-regulated superannuation entity for a period of 3 years and 6 months. APRA also noted that a total of 12 former Trio directors have now each provided an enforceable undertaking to APRA removing them from operating in the superannuation industry for a specified period of time.

 

 

  • On 22 October 2013, ASIC issued a Media Release, 13-285MR, warning consumers about advertising that promotes the use of self-managed super funds (SMSFs) to invest in residential properties through the National Rental Affordability Scheme (NRAS). The NRAS is run by the Federal Government in partnership with the States and Territories to promote investment in affordable rental housing, and offers direct payments and tax offsets for building and leasing housing to low and moderate income earners at a rate that is at least 20% below the market value.

 

FAQ 66: On SRF 702.0, a number of items are to be reported on a look-through basis. Is this the same basis as for the other reporting forms (e.g. SRF 533.0, SRF 530.1)?

  • In Australasian Annuities Pty Ltd (in liq) v Rowley Super Fund Pty Ltd [2013] VSC 543 (Supreme Court of Victoria, Almond J, 17 October 2013) the Victorian Supreme Court has found that the sole director of a family trust company had breached fiduciary duties owed to the company by diverting company funds to a family superannuation fund and a personal bank account. The Court found that the director had failed to act in the interests of the company, exercised his powers and duties for a collateral and improper purpose, and did not avoid conflicts of interest. Interestingly, however, the Court considered the company (in proceedings brought by the receivers and managers) could not succeed in its claim against the trustee of the superannuation fund, as there was no knowing receipt of trust property by fund trustee which gave valuable consideration for the superannuation contributions accepted in good faith and without notice of the breaches of fiduciary duty.

 

Further information

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