From "The Australian" "THOUSANDS of superannuation fund members who were defrauded in the Trio Capital scandal will have their money returned in the biggest bailout in the industry's history." Compensation will be limited to 5358 contributors to mainstream superannuation funds regulated by the industry watchdog, the Australian Prudential Regulation Authority. They will receive back all of the money that was invested in the Albury-based funds manager, formerly known as Astarra. To explain the exclusions, Mr Shorten said self-managed superannuation fund members had "the benefit of direct control over where their money was invested, while the members of other funds do not". "If people wish not to operate under those SMSF regulations, they're free to become members of the APRA funds," Mr Shorten said. http://www.theaustralian.com.au/nat...es-diy-investors/story-fn59niix-1226038148531
I will never need one. I am quite diversified and I know exactly where every last cent is. People that just hand over 10% of their pay to complete strangers, for decades, should not be bailed out. The people responsible for the fraud should be jailed. Imagine the the noise that would be made if those people were not bailed out, they would create such a problem for the regulators that those responsible for the fraud would have to face the music. Every time I hear the term bailout, I just assume some thief has avoided prison.
I won't need a bailout either. Thank god the assets I hold have zero counter party risk. The only risk I have is that its worthless and no one wants it. I'm happy to take that risk on gold. If no one wants gold, then so be it =D. Slam
I have a real concern that a levy on SMSFs will be introduced. Frankly I have no interest in subsidising the investment choices of others who, like me, have elected to take direct control of their investment decisions. The fraud sucks though... but one must ask why should someone who's chosen to invest in physical assets (whether it be precious metals, art, cars or real estate) or invest directly in the stockmarket should be required to bail out investors who have apparently simply handed it over to a third party to invest on their behalf.
In other words, if a shonky fund manager rips you off, it's your fault but if a shonky fund manager rips off a big superannuation fund, it's the shonky fund manager's fault.
Anyone in a SMSF should not be caught with thier pants down... simple logic.... this just encourages super fund managers to take risks (government will come to your rescue A.L.A Inside job), 2008 anyone?
There's already a levy of $150/year (legislation currently allows for up to $200 and can be modified).
I'm referring to a "one-off" levy on SMSF to bail out other investors, like the levy for victims of Trio Capital.
