The Australian Prudential Regulation Authority (APRA) today announced the disqualification of Mr John Thomas Turner and Mr Grant Edward Kench from acting as trustees, investment managers or custodians of superannuation entities under the Superannuation Industry (Supervision) Act 1993.

The decision to disqualify both Turner and Kench was a consequence of their mortgage investment activities on behalf of clients, whilst employed by a legal firm in Tasmania and involved a superannuation fund in which they both members. The Tasmanian Law Society subsequently took action and the Supreme Court of Tasmania found that both Turner and Kench were guilty of unprofessional conduct.

In its judgement, the Court found that the conduct of both “amounted to unprofessional conduct on the basis that it fell short of a standard of conduct that the clients of the firm, as members of the public, were entitled to expect of practitioners of good repute and competency.”

APRA’s Deputy Chairman, Mr Ross Jones, said that APRA views any unprofessional conduct by individuals involved in or potentially involved in the superannuation industry as serious.

“This is particularly relevant in the context of a compulsory superannuation system where members’ confidence in the system requires the very highest standards of fiduciary duty and prudence.”

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 $1.8 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.