The Australian Prudential Regulation Authority (APRA) today announced that it has replaced the trustee of the $400,000 Victorian-based Colors Pty Ltd Superannuation Fund.

APRA commenced a formal investigation into the affairs of the Fund in early August and, after seeking consent from the Assistant Treasurer, immediately froze all remaining assets.

The investigation found that the trustee directors were also officers of the employer sponsor, which until recently operated in the media and advertising industries. They had made unsecured loans to the employer sponsor, which amounted to approximately 80 per cent of the Funds total assets. The employer sponsor was subsequently placed in liquidation.

Mr Brandon Khoo, APRAs Executive General Manager, said that the trustee of Colors, now in liquidation, had been replaced to protect the interests of Fund members.

" We have appointed Stockford Superannuation Pty Ltd as acting trustee. APRA will provide them with the initial funding to assess the state of the Fund, undertake necessary account reconstruction and commence any action in the interests of members. Stockfords principal aim will be to ensure that Fund assets are properly valued and realised to the benefit of members," he said.

APRAs investigation into the conduct of the former trustee is continuing.