The Australian Prudential Regulation Authority (APRA) will dissolve up to 500 uncontactable superannuation funds and disqualify the fund trustees for failure to lodge annual regulatory returns. APRA will also prosecute a further 300 funds for failure to lodge annual regulatory returns on time. Under the Superannuation Industry (Supervision) Act 1993, all superannuation funds are obliged to lodge returns with APRA within a prescribed time frame. Failure to lodge a return is a strict liability offence under changes made to the legislation in 2001, making trustees liable for prosecution by APRA.
APRA Deputy Chairman, Mr Ross Jones, said that delayed lodgement of returns or failure to lodge returns compromises APRA?s ability to identify possible financial and compliance issues within the industry and, ultimately, to protect the interests of superannuation members.
?The trustees of these funds appear to have fallen short of fulfilling the task required of them and APRA is taking this action to ensure that member assets are properly safeguarded,? he said. ?Any existing assets will be transferred from the fund to the individual superannuation members as part of the dissolution process.?
Mr Jones said the dissolution scheme provides a final opportunity for trustees to cooperate with APRA and urged any trustee or superannuation member who identifies their fund on the list of uncontactable entities to immediately review the relevant information on APRA?s website and/or to call the APRA Contact Centre on 1300 131 060.
The list of uncontactable funds is available at http://www.apra.gov.au/Superannuation/Un-contactable-Superannuation-Entities.cfm and will be also published in a national newspaper advertisement on 9 December 2003.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $1.7 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.
| Media and industry inquiries only: | Sue Morey
Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3384
Mobile: 0438 124 524 |
| All other inquiries: | APRA Contact Centre
1300 131 060
|
