The Australian Prudential Regulation Authority (APRA) has replaced Harts Staff Superannuation Pty Ltd as corporate trustee of the Harts Australia Staff Superannuation Fund.

Bill Gole, APRA General Manager, Co-ordination, Rehabilitation and Enforcement, said, "APRA has been concerned for some time about some transactions undertaken by the former trustee. In light of these concerns, APRA took action in September to investigate the activities of the fund and appointed an inspector for that purpose."

At the same time, a freeze on the assets of the fund was imposed by APRA.

The action taken by APRA to replace the trustee has been taken specifically to protect the interests of fund members, Mr Gole said. The former trustee has itself agreed that its replacement would be in the best interest of the members.

"The principal objective of the acting trustee will be to ensure that fund assets are properly valued and realised in an orderly manner to the benefit of fund members. All property of the fund, whether in the name of the fund or of the former trustee, has been vested in the acting trustee - HL (Qld) Nominees Pty Ltd, a special-purpose company established by Hart Larwill, Chartered Accountants, Brisbane.

"APRA has been working closely with both the Australian Securities and Investments Commission and the Australian Taxation Office in its investigations into the affairs of the fund and will continue to do so."

For further information contact:

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