APRA pursues delinquent super funds

TheAustralian Prudential Regulation Authority(APRA) will refer 21 cases to the Director of Public Prosecutions (DPP) for late or non-lodgement of annual superannuation fund returns.

The number of breaches for the 2001/02 year was an increase on the 13 cases referred to the DPP for the 2000/01 year.

Of those 13, APRA says nine were prosecuted, three were withdrawn and one is still before the Court.

“We made it clear that we would not hesitate to prosecute trustees in cases of wilful default or where fund member welfare was at risk,” APRA general manager Ramani Venkatramani says.

“Funds referred to the DPP by APRA had not lodged a 2002 return and to date have not responded to the show cause letters and earlier general reminder letters,” he says.

“APRA relies on information provided by timely and accurate returns to identify and act on financial and compliance issues. Delayed or non-lodgement of returns seriously compromises our ability to protect the interests of superannuants.”

However, APRA says that overall compliance has improved from 36 per cent of returns received on time for the year 2000 to 93 per cent for the year ended June 2002.

Venkatramani says the significant reduction was a reflection of generally better compliance by the industry.

According to APRA, trustees considered most at risk of default were contacted and reminded of their obligation to lodge on time as well as the consequences of a breach.