Trustees can fail

A SAFE and well-managed superannution fund was most likely the result of trustees who work first and foremost in the interests of their members, according to Australian Prudential Regulation Authority executive general manager, Charles Littrell,

Mr Littrell made the point while addressing the annual conference of Major Superannuation Funds in Hobart last week.

“Unfortunately, APRA sees rare cases where trustees fail that obligation,” he said. “This does not mean that they altogether abandon member interests but that they are subordinated to another constituency.”

Mr Littrell said the cost in these cases was typically a lower return or possibly higher risk than would be the case if the trustee were fully focused on members interests.

In other conference news, Barry Watchorn, a trustee for both Care Super and the Australian Retirement Fund, was voted the trustee of the year 2003.

Mr Watchorn joined the Care Super board in 1998, when he was past of the Australian Chamber of Manufacturers.

He stepped up to take control of Care Super until Julie Lander was chosen to manage the $1 billion industry fund earlier this year.