The Australian Prudential Regulation Authority (APRA) today warned trustees of superannuation entities that report on 30 June to ensure that their annual returns are lodged no later than 31 October 2002.

With only one week until the deadline, APRA says that approximately 57 per cent of trustees have yet to post returns and those that fail to comply are liable to be prosecuted.

The regulator is sending a reminder letter to industry this week, focussing in particular on those funds which either failed to lodge a return last year or which lodged a late return.

APRA has already used its powers to successfully prosecute a number of superannuation trustees for non-lodgement. If trustees fail to lodge an annual return within the prescribed period, the regulator will consider referring the matter to the Commonwealth Director of Public Prosecutions (DPP) for prosecution.

APRA General Manager, Mr Ramani Venkatramani, emphasised that APRA relies heavily on timely and accurate information to make risk assessments of regulated entities.

"This information is vitally important to APRA and ultimately to superannuants. Failure to provide it within the prescribed period is a serious breach of the prudential requirements. Trustees should be aware that late lodgement is a serious matter which may constitute a criminal offence and APRA will be actively pursuing industry parties who fail to take their compliance responsibilities seriously," Mr Venkatramani said.

Mr Venkatramani said that auditors and actuaries play a critical compliance role in helping superannuation trustees to meet their statutory reporting obligations to lodge an Annual Return by the due date.

"We urge auditors who know that a fund is unlikely to complete its audited accounts in time to meet its lodgement deadline to have regard to their whistle-blowing obligations to APRA," he said.

Information on lodging Annual Returns is available on the APRA Website on www.apra.gov.au or by contacting the APRA Call Centre on 1300 13 10 60.

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.