The ex-chief executive and a former company director of Trio Capital (Trio) have agreed to enforceable undertakings with the Australian Prudential Regulation Authority (APRA).
Rex Phillpott and David Andrews agreed to the EUs today, a statement from APRA said.
Phillpott was the chief executive, director and secretary of Trio from October 2005 until Trio’s collapse in December 2009.
He 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 15 years, the statement said.
Andrews was a non-executive director of Trio between November 2005 and January 2006 and then again from July 2006 onwards.
Andrews 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 10 years.
APRA deputy chairman Ross Jones said the acceptance of EU was an “appropriate resolution” of the matters between Phillpott, Andrews and APRA.
“The lengthy period of Mr Phillpott’s and Mr Andrews’ exclusion from the industry reflects the high standards expected of directors of superannuation funds in carrying out their fiduciary duties,” Jones said.
“APRA will continue to pursue directors who fail to meet their duties to ensure they do not continue to operate in the superannuation industry, so as to maintain confidence in the superannuation system,” he said.
APRA said among its concerns, Trio failed to redeem existing investments in the Exploration Fund Limited (EFL) and made ongoing investments in the EFL, an offshore hedge fund.
Another concern was that Trio failed to redeem existing investments in the Astarra Strategic Fund (ASF) and made ongoing investments in the ASF, given there were similar issues to those associated with the EFL investment.
It also caused the Trio superannuation entities’ interests in the EFL to be transferred to the ASF.
ACT Super Management Pty Limited, the acting trustee of the super entities including ASF, has determined that the funds have been lost due to fraud or theft.
APRA’s investigations into Trio are continuing.
