The Australian Prudential Regulation Authority (APRA) has disqualified two trustees of failed Melbourne-based Colors Superannuation Fund. Norman Zuppicich and John Bayford have been banned from acting as investment managers or custodians after they failed the Superannuation Industry (Supervision) Act’s “fitness and propriety” test and the company presented losses of more than $300,000.

APRA said it disqualified the trustees because they both failed to exercise a reasonable degree of care and diligence in carrying out their duties. The pair also failed to comply with the Act’s prohibition on investing more than 5% of assets in the employer/sponsor.