WARNING - one downside of an SMSF that I found out about only after having set one up is that in the event of fraud you will not be covered by the gov't regulator APRA as far as compensation is concerned. SMSF's by way of their structure are considered by Shorten as sophisticated financial instruments and you (trustee) are responsible for your actions with no recourse. Retail funds are covered by APRA and compensation can be sought due to fraud. Be aware of any financial advice you seek or where a fund manager is likely to put your hard earned dollars. __________________________________________________________ Trio collapse: finally some answers BEVAN SHIELDS (Illawarra Mercury) 16 May, 2012 12:00 AM For almost three years, Trio Capital investors have questioned whether the theft of their hard-earned savings could have been prevented. Now, they will finally get some answers.
A federal parliamentary inquiry into the 2009 collapse will hand down a major report today - the result of almost a year's worth of public hearings and testimonies.
Hundreds of clients of former Wollongong financial planner Ross Tarrant lost a collective $23 million after investing in one of Trio Capital's flagship funds.
The fund was later declared a fraud, with millions funnelled to off-shore tax havens.
Stung investors hope the report will shed light on whether the Australian Securities and Investments Commission (ASIC), Australian Prudential Regulation Authority (APRA) and Australian Taxation Office (ATO) could have done more to prevent the collapse.
Victims who have been excluded from a $55 million government bailout package also hope it recommends they be eligible for compensation.
About 200 former Tarrants clients do not qualify for assistance because they were self-managed super fund investors.
"Ideally, we hope the politicians see common sense and compensate all people that were affected by what we believe were government failings in this matter," said Fairy Meadow resident John Telford, an incomplete quadriplegic who lost his $600,000 disability pay-out.
"We hope that is a formal recommendation, and if it is, then we will be putting pressure on the Government to implement it [because] we're not going to go away."
Horsley resident David Bridge, who had a diversified investment portfolio but still lost a significant portion in the Trio Capital collapse, said part of the blame rested with regulatory bodies.
"My big frustration with this is that ASIC, APRA and the ATO each fell down in their responsibilities.
"This [Trio Capital] wasn't an investment gone bad. This was fraud, and theft has occurred right under the noses of those regulatory authorities.
"I hope this report exposes those gaps in the regulatory framework and makes recommendations to fix them."
Mr Tarrant, who received more than $840,000 in payments from Trio Capital, has denied any wrongdoing. He is appealing against a seven-year ban handed down by ASIC.
Throsby MP Stephen Jones welcomed today's release of the report and, along with Cunningham MP Sharon Bird, will meet Financial Services and Superannuation Minister Bill Shorten next week.
