Assistant Treasurer Kelly O’Dwyer has announced that the government will not be providing further compensation to investors in collapsed investment firm Trio Capital.
The investor groups are made up of direct investors and SMSF trustees, and neither of these groups are covered by the compensation framework under the Superannuation Industry (Supervision) Act 1993 (SIS Act), Ms O’Dwyer said.
"Because they are not covered by the SIS Act, in good faith the government considered whether there were any other relevant contributing factors to the losses suffered by these investors, which would call for compensation to be paid.
"The government considered the action taken by the financial regulators, ASIC and APRA, and is satisfied that in relation to the collapse of Trio, both regulators carried out their roles and responsibilities appropriately, in accordance with the law and the regulatory framework."
Ms O’Dwyer noted that the government has already provided $71.7 million in compensation to eligible investors.
Trio collapsed in 2009 and there have been five official reviews regarding Trio or aspects of Trio's collapse in the last six years.
"On behalf of the government I wish to express my sympathies to all investors affected by the Trio collapse, and to acknowledge the significant financial and personal stress that the collapse has caused them and their families, including to those who lost their entire retirement savings,” Ms O’Dwyer said.
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