The Australian Prudential Regulation Authority (APRA) today announced that it has replaced Strategic Capital Superannuation Services Pty Ltd as the trustee (the Trustee) of the Perth-based Strategic Capital Superannuation Fund (the Fund) and appointed Deloitte Management Pty Ltd (Acting Trustee) as acting trustee.

In its role as Acting Trustee, Deloitte will assess the state of the Fund, undertake essential account reconstruction and commence any necessary actions.

On 14 March 2003, the Trustee gave an Enforceable Undertaking that prevented it from accepting new members and contributions and from making payments from the Fund without prior approval from APRA.

The regulator commenced a formal investigation into the affairs of the Fund on 19 March. It has since identified a series of possible breaches by the Trustee including failure to keep adequate records, failure to undertake an audit by an approved auditor and failure to submit annual financial reports to APRA. The Fund has been found to have conducted its business as a retail superannuation fund and taken contributions from the general public, even though the Trustee is not approved for this purpose.

In addition, investigators have only been able to locate some $13 million under management despite advice from the Trustee that the Fund had approximately $24 million.

APRAs Head of Enforcement, Dr Darryl Roberts, said APRA had been concerned that the Trustees conduct may have placed the Fund in an unsatisfactory financial position.

The Trustee has been replaced to ensure the assets are properly identified and realised for the benefit of members, he said.