If you’re a member of one of the super funds listed below, then you need to read this article.
- Astarra Superannuation Plan
- Astarra Personal Pension Plan
- My Retirement Plan, including subplans – Seagrims Retirement Plan, TIC Super, and Titanium Retirement Fund
- Employers Federation of NSW Superannuation Plan.
The two financial regulators have taken action against the trustee, Trio Capital Limited (formerly Astarra Capital Limited).
If you have an account in any of these super funds (or an interest in one of the managed investment schemes managed by Trio Capital Limited), ASIC and APRA advise you to refer to the significant event notices on the Trio Capital Limited website. Investors can also call ASIC’s Infoline on 1300 300 630.
APRA – suspension of trustee
The Australian Prudential Regulation Authority (APRA) has suspended Trio Capital Limited as the trustee of its four superannuation funds and as trustee a pooled superannuation trust. APRA has appointed an Acting Trustee to manage these five entities.
The Acting Trustee is now ACT Super Management Pty Ltd, a subsidiary of McGrathNicol, which has been appointed by APRA to protect the interests of the superannuation fund members. ACT Super Management is required to provide APRA with a report setting out its proposed course of action for the ongoing and future management of the five superannuation entities.
The APRA suspension is a result of numerous breaches of Trio Capital Limited’s licence conditions and Trio not being able to satisfy APRA’s concerns regarding the valuation of superannuation assets.
ASIC – suspension of Australian Financial Services Licence
The Australian Securities and Investments Commission (ASIC) has also suspended the Australian Financial Services Licence held by Trio Capital Limited. This company acts as responsible entity of 24 registered managed investment schemes, including the Astarra Strategic Fund.
Trio Capital Limited now has an external administrator, which will continue to act as responsible entity of the registered schemes until a replacement responsible entity is found or the schemes are wound up.
The administrator has been appointed to protect the interests of the members of the registered managed investments schemes.
Background information on Trio Capital
- The four main superannuation funds listed at the start of the article have approximately 10,000 members and reported assets as at end September 2009 of $300 million.
- Total assets under management in the various Trio Capital Limited superannuation entities and registered managed investment schemes, for which Trio is the Responsible Entity, are approximately $426 million.
- The total number of non superannuation investors is 732.
- The superannuation entities have significant investments in the Astarra Strategic Fund (ASF), one of the Trio Capital Limited managed investment schemes. The ASF financial statements for the year ended 30 June 2009 show total assets of around $118 million.
Background information on APRA/ASIC investigations
- ASIC commenced an investigation of the Astarra Strategic Fund on 2 October 2009.
- On 16 October 2009, ASIC issued a stop order in relation to the product disclosure statements for Astarra Conservative Fund, Astarra Balanced Fund, Astarra Growth Fund, Astarra Strategic Fund, Astarra Covered Call Fund and Astarra International Covered Call Fund.
- On 21 October 2009, ASIC issued a stop order on the product disclosure statements for Astarra Superannuation Plan, Astarra Personal Pension Plan, My Retirement Plan and three related sub-funds of My Retirement Plan. The effect of the stop orders was to prevent new issues of interests in the schemes and superannuation funds to investors.
- On 21 October 2009, APRA issued directions freezing the assets of the four main superannuation funds for one month (subsequently extended to 19 February 2010) to minimise the risk that transactions with fund members would occur on unit prices that may not be reliable.
Freezing of fund assets
The four superannuation funds involved are unable to accept contributions and rollovers, to pay benefits or permit transfers to other funds or allow investment switching.
Note: APRA has permitted, on a limited basis, monthly pension payments and certain other payments to be made but their continuation will be subject to ongoing assessment by the Acting Trustee and APRA.
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Copyright Trish Power
Hi - I'm Trish Power and I am the author of 
follow the money inflows – what justification did the financial planners use in their so called advice to switch clients from their existing funds to the newly created ‘white labelled’ Astarra funds?
seems like ASIC and the FPA are asking the same questions judging by todays news – finally.
Thankyou Trish for the above info.
I am one of the many who have their pension fund in the Astarra debacle.
We read and hear of all sorts of different reasons for why the fund is frozen etc,but no one including my financial advisor can tell me wether there is any money at all in the funds and if there is any at what point in the future can we expect to be able to retrieve it.
I did get one letter from financial advisor saying that The Trustee of the Superannuation and Pension funds is under part 23 of the superannuation industry (supervisory) Act 1993 (SIS Act) to apply for financial assisstance from Federal government.
Is this true I wonder or another bluff to make us feel better??
Many of us are in the situation of extreme hardship due to the above freeze,and feeling helpless as to what we can do.
thanks for listening to me and if you have any advise I would very much appreciate it.
Hi Jean
I have contacted ASIC for further information on any relief available to individuals affected by the Astarra funds. When I receive this information, I will include it on the SuperGuide website.
Regards
Trish