The Australian Prudential Regulation Authority (APRA) has commenced civil penalty proceedings in the Federal Court against the directors of Wes Lofts Superannuation Pty Ltd - the trustee of the Wes Lofts (Aust) Superannuation Fund - and related companies Wes Lofts (Aust) Pty Ltd and Quedox Pty Ltd.

APRA Executive General Manager Les Phelps today said that APRA had taken proceedings in the Federal Court to seek rectification of continuing and significant breaches of the Superannuation Industry (Supervision) Act relating to the use of superannuation assets.

"APRA will take appropriate court action whenever it is necessary to protect fund assets and the interests of members and where the trustees have failed to rectify significant breaches," he said.

APRA obtained interim orders with the consent of the respondents restraining the trustee of the Wes Lofts (Aust)Superannuation Fund from lending or investing any further monies to Wes Lofts (Aust) Pty Ltd and Quedox Pty Ltd or purchasing any further units in an associated unit trust. The matter is listed for trial on 29 October 2001.

APRA will not comment further until after the hearing.

For further information contact:

Gloria Peterson Public Affairs Manager 02 9210 3385 or 0419 250 286