The Australian Prudential Regulation Authority (APRA) today announced the disqualification of Mr Peter Cain from acting as a responsible officer of a superannuation trustee, investment manager or custodian on the basis of his lack of fitness or propriety under the Superannuation Industry (Supervision) Act 1993.
Mr Cain is a former director of the failed trustee company Commercial Nominees of Australia Ltd (CNAL), whose superannuation fund members lost in excess of $30 million.
The decision was based upon the view that, without any finding of dishonesty, he failed to exercise a reasonable degree of care and diligence in ensuring that CNAL carried out its trustee duties.
APRA has previously disqualified Mr Andrew Skinner, Ms Erica Robinson, Mr Anthony Hall, Mr Ross Honeyman and Mr Carl Hanich, all of whom are ex-directors of CNAL. The regulator is considering the disqualification of other ex-CNAL directors.
The above decision is subject to appeal. The disqualified person has 21 days from the date of notice in which to lodge a request for internal review of the decision by APRA. If still dissatisfied with the outcome, he or she may appeal to the Administrative Appeals Tribunal.
Under provisions in the Superannuation Industry (Supervision) Act 1993, which allows for compensation for losses suffered under certain circumstances, the Commonwealth Government has provided grants of financial assistance to superannuation funds formerly under the trusteeship of CNAL. The amount paid to date is around $25 million. Further compensation claims in relation to CNAL losses are under consideration.
APRA is the prudential regulator of the financial services industry including banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. It currently regulates $1.5 trillion in assets for 20 million Australians.