VOFF accuses Labor of “politicising a crime” in Trio fraud
Aussie politicians make “politicised and dishonest decisions about ‘fraud’” despite having no law enforcement of forensic investigation skills, Victims of Financial Fraud (VOFF) has alleged, pointing to the Labor Party’s dialogue around the Trio Capital fraud as evidence.
In a letter to Shadow Assistant Treasurer and Shadow Minister for Financial Services, Stephen Jones, the victims’ group accused Jones of making contradictory statements in regard to Trio, going from showing support for the Trio consumers in his electorate in 2011 to blaming financial advisers for the issue in 2013.
In 2011, Jones told Parliament: “They did everything by the book. They followed the rules set out by ASIC [the Australian Securities and Investments Commission]—indeed, they ticked all the boxes in ASIC's advice to investors”. In 2013 however, he said: “The reason these people lost their money is because they followed some very poor financial advice … “What sort of financial adviser in their right mind would encourage someone to put their entire life savings into a single asset?”
The latter also contradicted comments from then-Minister for Superannuation, Bill Shorten, in 2013 that approximately 92 per cent of Trio victims in Australian Prudential Regulation Authority (APRA) funds were victims through no fault of their own.
Further, VOFF alleged that Shorten’s comments were misleading, saying that to differentiate between that 92 per cent and the eight per cent in self-managed super funds (SMSFs) “seemingly distracted from the magnitude of problems with the investment regulatory framework”.
The victims’ group said that “accuracy and transparency serves the community better than politicising a crime”, saying that in the Trio fraud, custodians, auditors, research houses, ratings firms, fund managers, and both regulatory failed to identify the scheme.
AUTHOR
Hannah Wootton
Recommended for you
AZ NGA has entered into a strategic partnership with national advice firm MiQ Private Wealth, as a way to provide a succession solution, as well as career development opportunities for staff.
While the advice profession struggles under growing operating costs, Adviser Ratings has found more than half of practices – some 58 per cent – that generate less than $250,000 in revenue report no profit at all.
The Federal Court has ordered the freezing of assets and the appointment of receivers to two entities linked to Australian Fiduciaries, ASIC’s latest move in an ongoing investigation into the company’s managed investment schemes.
Off the back of the August adviser exam results, the profession has seen 17 new entrants hit the Financial Adviser Register (FAR) this week, helping numbers return to positive territory.
