The Australian Prudential Regulation Authority (APRA) announced today that it had reached a settlement with Mr Barry Egan, a past director of the former Approved Trustee, LifeTrack Management Limited (LifeTrack), in relation to its investigation into the AM Diversified Traded Policies Fund (DTPF), of which LifeTrack was the trustee.

APRA has accepted an enforceable undertaking from Mr Egan that he 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 froze the assets of the DTPF in October 2001. APRA had been closely supervising LifeTrack, in part due to its concern about the DTPFs heavy exposure to relatively illiquid traded life insurance policies, and subsequently intervened to prevent LifeTrack increasing its exposure to these policies.

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

APRA previously accepted enforceable undertakings from two other LifeTrack directors, Mr Alan Rich and Mr David Smith. LifeTracks status as an Approved Trustee has also been revoked.

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