SAFETY OF SUPERANNUATION INVESTMENTS
The Chair of the Senate Select Committee on Superannuation and Financial
Services (Senator John Watson, LIB, TAS) today called for an urgent investigation
and report by the Australian Prudential Regulation Authority (APRA) and
the Australian Securities and Investments Commission (ASIC) into the security
of superannuation investments administered by Commercial Nominees Australia
"The Committee demands an urgent investigation into non-arms length
inconsistencies with fund operations, claims of improprieties, inaccurate
descriptions of investment vehicles, and inappropriate and bad investment
and administrative decisions made by some of the funds administered by
CNAL", Senator Watson said.
The Committee is particularly concerned by press reports and representations
to the Committee claiming disturbing losses of individuals' superannuation
income on account of trustees' allegedly inappropriate investment activities.
According to media reports, up to 80 percent of the retirement savings
of around 300 retirees may be at risk.
CNAL, which is subject to regulation by APRA, is claimed to have invested
superannuation funds in long-term investment projects, some of which were
linked to private ventures and the directors of the same trustee company.
The Committee is concerned that this is an example of incidents where
superannuation fund trustees may have made investments on a non-arms length
basis in a manner that may not be consistent with their obligations under
Senator Watson said the Committee expects swift and direct action by
APRA and ASIC to investigate the claims, in an effort to maintain ongoing
confidence in Australia's superannuation system.
||Senator John Watson
|02 6277 3685 (Canberra)
03 6331 4544 (Launceston, TAS)
Principal Research Officer
|02 6277 3579
8 January 2001
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