The sudden collapse of investment firm Trio Capital will leave many people on the south coast of New South Wales financially ruined. This firm held investment funds ranging from $ 50,000 to $ 500,000 from individuals, and was also the repository for a number of Superannuation accounts.
The details are murky - but it seems that $ 180 million is missing, supposedly somewhere in a complex web of hedge funds located in foreign tax havens. Any substantial recover is - doubtful !
It seems to be a case of " here we go again ".
The inevitable clash of grand promises coinciding with investors need for better returns on their money. Unfortunately money safety contrasts with risk and we have some very appealing money managers who can present what looks like " sure fire " investment plans - some of which are simply Ponzi schemes.
There are regulatory bodies tasked with keeping our money safe, but these are administered by the government - and the government has never been known for achieving financial accountability - or even having an ability to manage our own tax money - for that matter !
Time for a new regime. Any investment company must be required to take out insurance cover to guarantee every last cent back to investors in the case of misfeasance !
In return for accepting this risk you can be sure that the insurers will demand it's people engage in minute by minute surveillance of each and every investment decision - and the insurance industry is savvy in a far more effective way than regulatory government entities.
And there would be another benefit.
Investment firms that fail to convince an insurer to issue a policy would not be allowed to engage in the market place - and hence the shonks would not get a chance to plunder family savings - and ruin honest people !
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