VOFF letter added to Coalition’s woes
Joining the chorus of those after the Federal Liberal Party, Victims of Financial Fraud (VOFF) has written to Treasurer Josh Frydenberg to remind him how vehemently the party objected to holding a Banking Royal Commission, and that the Trio Fraud had still not been adequately resolved.
Scott Morrison voted against the need for a Commission 26 times, then-Minister for Revenue and Financial Services Kelly O’Dwyer 23 times, and Peter Dutton, Michelle Landry, Barnaby Joyce, Bert van Manen, Ken O'Dowd, Luke Howarth and Warren Enstch 22 to 24 times each; figures the Government would want to keep quiet going into an election given the public approval for the Commission.
VOFF drew attention to O’Dwyer’s adamant stance that the Australian Securities and Investments Commission (ASIC) and Australian Prudential Regulatory Authority (APRA) had carried out their roles in regulating and licensing Trio Capital appropriately. The Commission had since flagged the regulators’ responses to misconduct as largely wanting.
The organisation said ASIC’s failures, along with a lack of guidance about fraud or weaknesses in the financial system, the Trio Fraud and the Australian Workers Union “slush fund”, and public servants’ ability to meet community standards, all resulted in the “systemic failure of the financial system”.
In light of these failings, VOFF repeated to Frydenberg its frequent cries for the victims of the Trio Fraud to receive appropriate compensation, reminding him that the victims of this misconduct were not captured in the Commission’s Terms of Reference.
“Whether its misconduct or alleged criminal misconduct in the financial sector, victimization does not constructively address serious financial crime,” the letter said.
“In regards to the scandalous events outlined in this letter, VOFF expect your support for compensation/restitution for the Trio victims over the systemic failure of the Australian Financial System and the Government agencies involved.”
AUTHOR
Hannah Wootton
Recommended for you
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
Private market secondaries manager Coller Capital has unveiled a new education platform to improve advisers’ and investors’ understanding of secondaries.
