The Australian Prudential Regulation Authority (APRA) announced today that it had reached a settlement with Approved Trustee, LifeTrack Management Limited (LifeTrack), and two of its directors.

In response to falling equity markets, LifeTrack took steps in October 2001 to freeze the assets of the Diversified Traded Policies Fund (DTPF). APRA had been closely supervising LifeTrack, in part due to its concern about the DTPFs heavy exposure to relatively illiquid traded life insurance policies. APRA subsequently intervened to prevent LifeTrack increasing its exposure to such policies in the DTPF.

APRAs concerns also led it to conduct an investigation in terms of s.263 of the Superannuation Industry (Supervision) Act 1993 (the Act). The investigation identified a number of issues about the conduct of the Trustee and its directors (without any finding of dishonesty) regarding the Trustees handling of the DTPF.

APRA has now accepted enforceable undertakings from two LifeTrack directors, Mr Alan Rich and Mr David Smith, that they will not occupy any role as a responsible officer in any superannuation entity regulated by APRA or an investment manager or custodian for a period of ten years.

Lifetrack will also pay $1 million to APRA in settlement of any potential civil penalty actions against the Trustee, Mr Rich or Mr Smith for possible breaches of specific provisions of the Act.

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 $1.6 trillion in assets for 20 million Australians.

For further information:	Media Enquiries only:
APRA Call Centre	Susan Morey
1300 131 060	APRA - Public Affairs
	02 9210 3384
	0438 124 524