The regulator is seeking orders under the Superannuation Industry (Supervision) Act 1993, which would see former Trio director David Millhouse disqualified from acting as trustee of a super entity or of “being responsible officer of any body corporate that is trustee, investment manager or custodian of a super entity for a period to be determined by the court”, according to a statement.
Mr Millhouse approved around $85 million of investments, which APRA alleges may have been approved without adequate due diligence.
APRA also alleges the investments were not at ‘arm’s length’, which may have resulted in them being more favourable to related parties.
Mr Millhouse also contravened sections of the Superannuation Industry (Supervision) Act, APRA alleged.
These issues are now subject to the court proceedings, which are the corollary of the collapse of Trio in 2009.
“APRA has made it very clear it will take action against any former Trio directors who have failed to meet the high standards expected of them as superannuation trustee directors and have not acted in the best interests of members,” said APRA member Helen Rowell.
The proceedings in the Federal Court follow APRA’s acceptance of enforceable undertakings from five former Trio directors in July, for periods between four and 12 years, bringing the number of former Trio directors banned to 11.
