The Australian Prudential Regulation Authority (APRA) has used the disqualification of two superannuation trustees to send a signal that it will act against those who fail in their obligations.
APRA announced that two Brisbane-based trustees associated with the failed Harts accountancy group, Graham W Stewart and Ian R Stevens had been disqualified under the Superannuation Industry (Supervision) Act 1993.
It said the effect of these disqualifications is that Stewart and Stevens are prevented from acting as trustees, investment managers or custodians of a regulated superannuation entity or as responsible officers of a superannuation trustee, investment manager or custodian.
Both men were former trustee directors of the Harts Staff Superannuation, the corporate trustee of Harts Australia Staff Fund which was based in Brisbane.
In a statement issued on April 30, APRA says that it has determined that each director failed to exercise a reasonable degree of care and diligence in carrying out his trustee duties.
“In particular, APRA found that Stewart and Stevens abrogated their director trustee responsibility and independence by failing to carry out proper due diligence in relation to a $900,000 in specie employer contribution to the fund in the form of a mortgage over land in South Australia,” the statement said.
“APRA is currently seeking to recover that asset on behalf of the Fund members in Court,” it said.
Commenting on the disqualification, APRA deputy chairman Ross Jones says the SIS Act requires trustees, among other things, to act honestly and in the best interests of beneficiaries, to exercise care, skill and diligence, and to formulate and give effect to an investment strategy for the fund that balances risk and return.
He says APRA’s primary concern is to protect the best interests of superannuation beneficiaries.
“APRA will remove trustees who have failed to exercise due competence, care, diligence or prudence from key roles in the industry,” Jones says.
