Submissions - Robert Ross Bray
Managed Investments Act Review
August 15th 2001.
This submission is from a citizen, approaching age pension age.
I need to be within the laws associated with a minimum aged pension.
I need to be within the laws associated with a maximum self funded lifetime pension.
I need to put in place the checks and balances that allow me to feel comfortable with the manner in which my income is provided up to the point of death.
I need to be sure that assets providing such self funded lifetime pension are protected against criminal fraud and criminal theft.
I need to have my faith restored in the retail investment industry.
I need to know that the Managed Investments Act provides the framework and powers to investigate, police and bring cheats and fraudsters to court, as well as restore stolen capital and assets.
I put it to your review that I am not confident that my assets are protected against criminal fraud or criminal theft held in many managed funds as well as shares in various listed companies all placed by a responsible entity.
I have assessed the risks, as far as I am allowed to seek detail which I find
poor from managed funds. Yet excellent from shares held in listed companies.
If however, one of the responsible entities or officers associated with any responsible entity, is proven to have fraudulently converted any of the assets of the managed funds or investments they place with companies in which I have interests I have no immediate recourse to my capital. Your Act has clearly failed me as a citizen.
The Association of Independent Retirees, has continually made submissions on this subject, without success. Does it take a revolt or assertive action to make my needs heard?
1. The Growden Case in SA.
I am upset and greatly disturbed upon recently learning of an acquaintance who, after a lifetime in the WA public service took advice, was defrauded of his lifetime superannuation savings in the (WA solicitors mortgage fraud)
From these discussions and readings I fear some of my capital is not adequately protected by your Act. Should my capital be decimated I will have no way to maintain my modest lifestyle and be forced to throw myself upon the public purse for full pensioner benefits.
1. I will have no time left to rebuild a capital base.
Before, during and after three years of your Managed Investments Act 1998, self funded retirees find their capital has been stolen by shonks and thieves. Nothing has changed
Under your terms of reference:
Better protection of investors funds.
Refinements could be made (whether requiring legislative amendment or not) to enable the arrangements to operate more efficiently and affectively, while not unnecessarily detracting from the protection afforded to investors.
I wish you to consider the following alteration to the Act or regulations.;
ESTABLISH A CONTRIBUTORY DEFAULT INDEMNITY FUND.
An obligation be placed on the finance industry by a provision in your Managed Investments Act to force participation in a contributory default indemnity fund.
Such fund to be administered by the government as a first preference point to refund capital to those consumers(investors) defrauded by responsible entities (your term) of the finance industry in established circumstances, criminal fraud or other proven criminal activity.
You consider an impost of 0.255% premium, levy or tax by those jointly seeking protection (consumers or investors) and all those responsible entities dealing with public funds at retail level.
This consumer industry funding pool forms the Default Indemnity Fund. A government agency , or other becomes the independent regulator to the exclusion of the finance industry.
Predatory incursions must be guarded against. The mushrooming superannuation/pension capital base must not be allowed to become the new hunting ground for those without scruples and with criminal intent. The consumers are watching and your review will be judged by the protection afforded those in the last stage of their lives, self funded retirement.
PROVIDE A STRUCTURE TO RESTORE MISAPPROPRIATED CAPITAL.
Ensure the retail finance industry fronts up to its prime duty of care to directly restore capital defrauded by responsible entities.
Currently A.S.I.C. is not empowered to take direct action and recover capital for defrauded consumers even where irrefutable evidence in uncovered.
Currently when A.S.I.C. passes over a case of illegal action to Police Special Task Force, prosecution is undertaken but again no power to enforce the recovery of misappropriated capital or assets.
In joint operations A.S.I.C. and Police take no direct action to restore the consumers misappropriated capital.
How can it be claimed penal powers deter. When the Act does not empower those
investigating fraud. Then when capital is traced and not able by law to be recovered?
Self funded retirees who have lost lifetime savings through criminal activity of some financial advisors, mortgage agents, lawyers, accountants, valuators is loosely described as "Civil Action". An action that is invariably futile, costly, protracted and damaging to the health a well being of elderly victims who are the prey of a damaging minority of financial advisers.
What can you do to restore my faith in your Act and Parliament
Robert Ross Bray
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