Dear Parliamentarian,
The 2009 $176 million TRIO Super fraud and the recent SHIELD and FIRST GUARDIAN Superannuation frauds have exposed flaws in our regulatory regime that demands urgent legislative attention.
The perpetrator of the TRIO Fraud Shawn Richard spent 2 years 6 months of a 3-year 9 month term in jail after pleading guilty to stealing $26.6 million for himself hidden offshore and was released early after good behaviour. The other $149.4 million disappeared out of Hong Kong and has never been recovered with Hunter Biden one of the prime suspects according to SMH Journalists Stuart Washington.
No wonder Shawn Richard behaved well in jail, he decided to endure the heat of the investigation/incarceration then disappear offshore with $26.6 million to fund his lifestyle.
It appears the perpetrators of the SHIELD and FIRST GUARDIAN frauds have chosen a similar path, put up with short term heat then enjoy their ill gotten gains over the medium to long term by sending the cash offshore.
The law needs to be changed to retain these fraudsters in jail until the offshore cash has been recovered, similar to the pressure put onto murderers who will not disclose the location of their victims.
In addition, all of the guilty Advisers involved should be banned for life or incarcerated depending on their level of involvement.
It is so unfair that less than 1% percent of the Advice Profession can taint the reputation of all other Professional Advisers.
The lesson from the 2011 Senate Inquiry into the TRIO Fraud was the poor performance of the Trustees, Auditors, Research Houses, Fund Managers, ASIC/APRA and the same failings apply to the Shield/First Guardian fiasco some 14 years later. We are pleased that Macquarie Bank have agreed to pay $320 million for their incompetence, we expect the other stakeholders will also contribute.
The days of unfairly blaming Financial Advisers for product failure are behind us.
Regards.
Peter Johnston | Executive Director
Association of Independently Owned Financial Professionals
Suite 416, 480 Collins Street, Melbourne VIC 3000
P 1800 111 203, d 03 9863 7574, m 0418 857 621
www.aiofp.net.au | Download my business card
This message is presented as a service to our community. Knowledgemaster International (KMI) or its owners and employees are not a member of any group associated with the “sale of advice” profession, any regulatory bodies, product manufacturers or hold or supply any consultancies to any government instrumentalities or lobby groups. Any actions or inactions taken as a result of reading this message are the sole responsibility of the reader.