APRA wins Harts Staff Super Fund case
The Australian Prudential Regulation Authority (APRA) has cited successful action in recovering the assets of a failed superannuation fund as proof of its powers under the Superannuation Industry (Supervision) Act (SIS Act).
The regulator's comments came in the wake of successful action in the Supreme Court of South Australia to recover the assets of members of the failed Harts Australia Staff Superannuation Fund.
APRA had been appointed acting trustee of the Harts fund in 2001 and became involved in a dispute over a mortgage given to the fund.
The Supreme Court on Tuesday issued a declaration that the amount owing to APRA as the acting trustee under the mortgage was the $900,000 principal and $890,175.81 in interest.
The court also issued further orders allowing APRA as the acting trustee to sell the property to recover the amounts as well as the costs of the legal action.
Commenting on the court's decision, APRA deputy chairman Ross Jones said without the power conveyed by section 298 of the SIS Act, the regulator would not have been able to initiate legal action to recover the amounts owing under the mortgage.
"The success of this recovery action reinforces the importance of APRA's powers, which enable it to instigate legal proceedings in the name of a fund's acting trustee in order to recover assets that are due to, and would otherwise be lost to, members of a superannuation fund."
AUTHOR
Mike Taylor
Recommended for you
A quarter of advisers who commenced on the FAR within the last two years have already switched licensees or practices, adding validity to practice owners’ professional year (PY) concerns.
Integrated wealth and financial services group Rethink has launched a financial planning arm called Rethink Wealth to expand beyond property investing and into holistic wealth management.
While adviser numbers continue to slowly creep back up, the latest Wealth Data analysis reveals they would actually be in the green for the calendar year if it weren’t for so many losses in the limited advice space.
Iress has appointed a chief AI officer to spearhead the fintech’s strategic focus on AI, with chief executive Marcus Price describing how the technology opens the doors to a “new frontier for wealth advice”.
