ASIC 'must investigate' super link

The chief executive of the peak body for not-for-profit superannuation funds representing more than $450 billion in investments, Fiona Reynolds, said allegations raised by BusinessDay needed to be examined.

"I think where there's allegations made ASIC has an obligation to investigate the situation because, after all, we are dealing with members' money," Ms Reynolds said.

"Superannuation, of course, is very tightly regulated, but we need people of good character to hold financial services licences."

BusinessDay revealed yesterday that Jeffrey Revell-Reade, based in Austria, owns the Melbourne-based Oz Group companies that help to manage more than $500 million in Australian superannuation. It was also revealed that Go Markets and Vantage FX, owned by James Sutherland, who is based in Hong Kong, were involved in foreign exchange and derivatives trading in Australia.

Mr Revell-Reade and Mr Sutherland have faced questions about their link to Pacific Continental Securities in Britain, which collapsed in 2007. British regulators later ruled the broker acted as a "boiler room" using high-pressure sales tactics to sell nearly worthless shares to investors.

But ASIC has refused to answer questions about financial services licences it issued to companies owned by the men and how the companies passed the necessary test of "good fame and character".

Ms Reynolds said the three superannuation funds administered by Oz Group were not among her members. AIST works on policy development and promotes the interests of its superannuation fund members.

Superannuation funds administered by Oz Group companies are Enterprise Super, the Pooled Investment Fund and the Pinnacle Superannuation Fund.

Trustees for the three funds have said the Oz Group company had only an administrative role and no control over the assets placed into the funds.