APRA seeks to ban another Trio director
The Australian Prudential Regulation Authority (APRA) is seeking the banning of former Trio Capital director David Millhouse from the superannuation and investment management sectors for a period to be determined by the Australian Federal Court.
Millhouse was member of the Trio Investment Committee and a director of Trio Capital, which collapsed in late 2009 with losses of around $176 million.
During his tenure on the board of Trio, Millhouse approved around $85 million of investments that now form the subject of the proceeding. Among other things, the regulator alleges the investments were approved without adequate due diligence.
APRA had commenced proceedings in the Federal Court seeking that Millhouse be disqualified from acting as a trustee of any superannuation entity or a responsible officer of any body corporate that is a trustee, investment manager or custodian of a superannuation entity.
"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.
A total of 11 Trio directors have provided enforceable undertakings (EU) to the regulator so far, which removes them from operating in the superannuation industry for a specified time.
Last month APRA announced it had accepted EUs from five directors, banning them from the industry for periods ranging from four to 12 years.
The handling of the collapse of Trio Capital by APRA and the Australian Securities and Investments Commission was widely criticised by politicians, industry and victim groups alike, with the Government most recently releasing a public consultation paper dealing with the strengthening of APRA's crisis management powers.
Furthermore, the Federal Opposition urged the newly-appointed Federal Treasurer Chris Bowen to revisit the compensation arrangements which flowed out of the collapse of Trio Capital.
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