The Trust Company of Australia has been appointed as the approved trustee for superannuation vehicles previously administered by Beacon Funds Management (BFM), after BFM was forced by the Australian Prudential Regulation Authority (APRA) to give up its trustee status.
Under the arrangement, Trust Company will fulfil trustee duties for BFM’s pooled superannuation trusts, master plans, corporate superannuation funds and eligible rollover funds, none of which are associated in any way with Kevin Wyld or Beacon Investment Management Services.
The move follows an investigation by APRA which found BFM had breached the minimum capital requirement needed to be an approved trustee.
Under APRA guidelines, approved trustees are required to hold $5 million in capital, or have other equivalent backing.
As reported byMoney Managementin August, BFM has incurred substantial losses from trading in derivatives since June 30, which led to a significant decrease in its capital position.
Trust Company managing director Jonathan Sweeney says the group’s appointment is consistent with the its core trustee services business and their specialisation in superannuation.
“It allows Beacon to move forward with its revised business strategy and more importantly, provides Beacon’s members with certainty,” Sweeney says.
Trust Company is currently in the process of proposing a merger with Permanent which is expected to be approved later this month. The combined entity will have super funds under trusteeship of more than $6 billion of which $300 million will be made up by BFM funds.
BFM, which is a subsidiary of Beacon Financial Services, was approved trustee for a number of small APRA funds. Members of these will be given the choice of whether to remain with their fund with Trust Company as the new trustee, or to find another fund.
