The three sister regulators are hopelessly politicized and useless.  APRA did not realise toxicity existed in RMBS Packages until we suggested as such in 2012 Parliamentary Senate Inquiry into Banking.  "Government cannot, ought not to profit from fraud."  Pretty basic stuff.  Groups telling APRA of fraudulent conduct complaints re TRIO Capital.  APRA says: "huh...please explain.....we are bit thick but we will redraft...."  and on it goes proving the high level of regulatory inertia (or corruption) in this country.    Its going to be an ugly consumer war indeed as the aggrieved will not stand for this nonsense, nor the regulatory clap trap for much longer.  Someone in Government has to take control of these Banks and Super Funds instead of the "tail wagging the DOG!!!!" Instead of watering down consumer protection laws, Joe Hockey and Mathias Cormann would do well to throw the bucket at the Banks! This email address is being protected from spambots. You need JavaScript enabled to view it.

http://www.financialobserver.com.au/articles/legal-issues-finance-delay-trio-distribution

Legal issues, finance delay Trio distribution

29 Apr 2014 By Kate Kachor

Unresolved legal battles coupled with a lack of government-backed financial assistance have delayed a release of money to members of a Trio Capital-linked investment fund. The anticipated distribution to Ualan-associated investment fund investors would now not proceed due to an outstanding potential claim involving Australia and New Zealand Banking Group (ANZ) and its wealth arm, OnePath, ACT Super Management said in a statement to members.

ACT Super had hoped to make a distribution to members of the funds in the first quarter of 2014 following the resolution of a St George claim. In September last year, ACT Super finalised a settlement with St George Bank over a multi-million-dollar shortfall of funds associated with the collapse of property investment Ualan Carey Bay (UCB).

ACT Super withheld a portion of funds from members of five funds previously under Trio’s management, which had exposure to UCB’s parent entity and failed property developer Ualan Property Holdings. The cash had been withheld since 2009 to cover potential St George claims.

As a result of the undisclosed settlement, fund members would receive a distribution of funds in 2014.“ACT Super will review the funds’ ability to make a further distribution to members once the outcomes of the ANZ/OnePath claim and part 23 application for financial assistance are known,” ACT Super said in the statement dated 17 April.

“In the event that a further payment can be made following resolution of these matters, this will be made as soon as possible thereafter.”The second banking claim, made by Perpetual and OnePath, remained unresolved, it said.“In relation to the remaining claim against the funds, notified by Perpetual/ANZ (OnePath), ACT Super is continuing to resist this claim and is seeking to settle the matter,” it said.  “Although ACT Super had hoped to settle this matter in early 2014, it is yet to be resolved.

”The statutory limit for when a claim could be made could be up to 12 years, it said. Perpetual/ANZ’s claim arose following a shortfall to the lender from the sale of a Ualan Property development in Somersby, New South Wales. The outstanding application for part 23 government-backed financial assistance had also caused the distribution to stall, ACT Super said.  “As members are aware, the acting trustee is pursuing a part 23 application for a grant of financial assistance in relation to the losses sustained by the funds from their investment into Ualan,” it said.

“Following further dialogue with APRA (Australian Prudential Regulation Authority) in relation to the interpretation of fraudulent conduct as contemplated by part 23 of the [Superannuation Industry (Supervision)] Act, ACT Super has redrafted the application and recently submitted a revised final draft of the application to APRA for its consideration.”Trio collapsed in October 2009 with estimated losses of about $123 million. - See more at: http://www.financialobserver.com.au/articles/legal-issues-finance-delay-trio-distribution#sthash.lsFQzuPr.dpuf