On 8 April 2016, the Australian Prudential Regulation Authority (APRA) released its report into the investigation of the collapse of Trio Capital Limited, providing an overview of the circumstances which contributed to the failure and the regulatory actions taken.
The outcome of the Trio investigation provides important lessons for superannuation trustees, who must act in the best interests of their members. Importantly key factors impacting Trio were:
- inadequate investment governance processes
- failure to adequately manage conflicts of interest with related parties;
- failure to implement adequate controls to mitigate fraud
Copies of the investigation report are now available on APRA’s website:
www.apra.gov.au
