No further Government compensation for Trio Collapse

Nest egg, superannuaiton, SMSF, retirement
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Trio Capital, Trio collapse, government compensation, SMSFs, direct investorsThe Government has announced that it will be providing no further compensation resulting from the collapse of Trio Capital, including for SMSF investors.

Minister for Small Business and Assistant Treasurer, Kelly O’Dwyer, said in a statement that two groups of investors had been advised there would be no further Government compensation.

The statement says neither of these groups, direct investors and SMSFs, are covered “by the compensation framework under the Superannuation Industry (Supervision) Act 1993 (SIS Act)”.

“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,” said Minister O’Dwyer.

“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.”

The Government has so far provided $71.7 million in compensation to “eligible investors”.

“A third group of investors have been advised that the Government cannot consider the payment of compensation under the SIS Act, because no application for compensation has yet been made by the trustee of the superannuation fund,” Minister O’Dwyer said.

“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.”

“Although the recent Financial System Inquiry considered that Australia’s financial system and regulatory architecture does not require wholesale change, the Government is further strengthening the financial system to improve consumer outcomes.

“The Government has also established the multi-agency Serious Financial Crime Taskforce to disrupt and deter financial crimes.”

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