Assistant Treasurer Kelly O’Dwyer has advised two groups of investors in the now-collapsed Trio Capital, which includes SMSF trustees, on how it will proceed with compensation.
In an announcement this afternoon, Ms O’Dwyer said the government has advised the investors that it will not provide further compensation.
The investor groups are made up of direct investors and SMSF trustees, and neither of these groups are covered by the compensation framework under the Superannuation Industry (Supervision) Act 1993 (SIS Act), Ms O’Dwyer noted.
"Because they are not covered by the SIS Act, in good faith the government considered whether there were any other relevant contributing factors to the losses suffered by these investors, which would call for compensation to be paid," Ms O'Dwyer said.
"The government considered the action taken by the financial regulators, ASIC and APRA, and is satisfied that in relation to the collapse of Trio, both regulators carried out their roles and responsibilities appropriately, in accordance with the law and the regulatory framework."
Ms O’Dwyer noted that the government has already provided $71.7 million in compensation to eligible investors.
Trio collapsed in 2009 and there have been five official reviews regarding Trio, or aspects of Trio's collapse over the last six years.
"On behalf of the government, I wish to express my sympathies to all investors affected by the Trio collapse, and to acknowledge the significant financial and personal stress that the collapse has caused them and their families, including to those who lost their entire retirement savings,” Ms O’Dwyer said.
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