Industry Super Funds Trustees Insider Trading

[Garpal Gumnut]

It would appear that many trustees of industry super funds are being investigated for criminal behaviour according to a report in the AFR.

https://www.afr.com/companies/finan...-trustee-snouts-in-the-trough-20211031-p594mz

ASIC have been investigating and although it is early days large fines and even gaol may result.

It makes those ads for Industry Super Funds seem moot. The escalator to wealth for those appointed by industry, unions and "worthy" insiders.



gg

 

[Dona Ferentes]

Rivers of gold. Make anything compulsory and what happens?!?!?

The attitude of many in financial services is of entitlement; that it is raining money, all you have to do is put your hand out the window and collect some as it passes.

 

[sptrawler]

There is a reason people start their own SMSF.

 

[KevinBB]

... and also the reason why, a very long time ago, I gave up supporting those who control these so-called industry funds. Being exposed to collective labour activities in the 1970s was quite an eye-opener.
KH

 

[sptrawler]

I always wondered how these fund managers, weren't privy to sensitive information, when they were apparently loaning shares to short sellers.
This issue doesn't apply to that practice apparently, but applies to moving your asset's when you know the manure is heading for the fan.

https://www.afr.com/politics/super-...insider-trading-investigation-20211027-p593q6
From the article:
ASIC examined whether fund executives had used their access to price-sensitive valuation information “for personal gain by switching investment options based on their knowledge of the timing of the revaluation of unlisted assets”.
Although the behaviour in question does not breach insider trading laws, the regulator said it was “similar to insider trading and may contravene other provisions of the law”.
The Australian Financial Review contacted eight funds to ascertain their involvement with the ASIC surveillance, and to ask if any of their senior executives were being investigated by the regulator for switching their investments based on access to price-sensitive information.

The funds contacted include those that provided evidence to the Parliament’s economics committee last year that executives had switched their investment options after the pandemic.
Liberal MP Tim Wilson, who was chairman of the committee, raised the transfers with ASIC.

Three super funds – AustralianSuper, Cbus and Hesta – declined to comment when approached by the Financial Review.
AustralianSuper told the Parliament last November that six directors and one executive had made switches during the period following the onset of the pandemic. Cbus said at the time that “some directors, executives and staff” had switched but did not provide any further details, and Hesta declined to provide information about the investment decisions of trustees or executives to the Parliament.

Since unlisted assets are revalued only periodically, super fund executives could trade on inside information by moving their savings out of an investment option with an allocation to unlisted assets before the fund revalued these investments lower.

 

[explod]

Good thread GG, began to see it around 2001 and took care of my own since.

Of note to me recently is how in straight trading there is continual down selling at just a couple of shares at a time. We can only trade $500 or more at a time.

 

[dyna]

That. And the ferkels getting in front of you with half a cent, if you have put on a large order.
What is that all about?

Of note to me recently is how in straight trading there is continual down selling at just a couple of shares at a time. We can only trade $500 or more at a time.