Some years ago I set up my own DIY fund, and did a course in superannuation administration. The duties of trustees are legally quite stringent. They are required to take even more care than they would with their own money. If they are found to have behaved irresponsibly or imprudently, they can be liable for losses incurred themselves. To me stock lending is imprudent, as what security is provided to the fund in exchange for the risk? It is also the duty of the trustee to prudently check the safety of a borrower. The cost of litigation is high, but it is about time some test cases were brought before the courts for such matters as losses incurred through trustees lending to such dubious outfits as Opes. When there is some blood on the floor it may well put a bit more sense into trustees, but I suspect they were/are a bit overawed by these fast talking hustlers and dont have the nous to realise what they are getting themselves into. Human beings are a greedy gullible, vain ,lot, on the whole.
