Trio SMSF Collapse a Result of Greedy Trustees

The collapse of Trio Capital is apparently the result of greed and misdoings by some trustees. According to a report that was published on Financial Review, these trustees self-managed their super funds.

The report also said that investors choosing to put their money into SMSF were assured that they can have complete control over their investments and thus, will be able to avoid any management fees that larger institutions ask.

Giving investors full control puts the responsibility on them for their decisions, regardless of whatever advice was given to them by their financial planners or brokers.

The report said that the collapse was the result of a lack in control, marred by greed of gaining from these investments in a “get rich quick” scheme, and a wrong system for rewarding payments and incentives to financial advisers.

The effects have rolled over even to smaller investors.

Meanwhile, investors who placed their money under Trio Capital did not get any type of compensation compared to those who invested through the Australian Prudential Regulation Authority (APRA).

In an interview with Financial Services Minister Bill Shorten, he said that the provisions on compensation for SMSFs only meant to cover super funds controlled under APRA. The government apparently did not receive any request for Trio capital to be established and levied with similar provisions imposed on other SMSFs.