Former Trio Capital director Keith Finkelde has agreed to not take on the roles of trustee or responsible officer for six years, after signing an enforceable undertaking (EU) with the Australian Prudential Regulation Authority (APRA).
“Mr Finkelde has acknowledged APRA’s concerns that he failed to carry out his duties properly as a director of a superannuation trustee,” APRA said in a statement.
He had undertaken not to act as a trustee or responsible officer of a body corporate that was a trustee, investment manager or custodian of an APRA-regulated superannuation entity for six years, the prudential regulator said.
APRA’s concerns included that Trio failed to adequately consider counterparty risks, the risks of investing in offshore hedge funds and the risks associated with the investment structure of the Astarra Strategic Fund (ASF) through deferred purchase agreements.
“The Trio superannuation entities’ investments in the ASF have not been able to be redeemed and ACT Super Management Pty Limited, the acting trustee appointed to the Trio superannuation entities, has determined that the funds have been lost due to fraud or theft,” APRA said.
“Mr Finkelde accepts that, with the benefit of hindsight, and with what has since transpired, he should have acted differently in relation to APRA’s concerns and genuinely regrets the consequences that arose.”
APRA deputy chairman Ross Jones said the acceptance of the EU was an appropriate resolution of the matters between Finkelde and APRA.
“APRA’s ongoing enforcement action demonstrates its determination to identify and take action against directors involved with Trio who have failed to meet the high standards expected of trustee directors,” Jones said.
Finkelde was a non-executive director of Trio from April 2007 until Trio’s collapse in December 2009.
He was also a member of the investment committee from July 2008 to December 2009.
Finkelde is the fourth Trio director to give an EU to APRA following the regulator’s investigation into the collapse of Trio. APRA accepted EUs from former Trio directors Rex Phillpott and David Andrews earlier this month, and from Natasha Beck in July.
