APRA accepts undertaking from Cbus, launches further investigation
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The news: The Australian Prudential Regulation Authority (APRA) has accepted a court-enforceable undertaking from Cbus for a holistic risk transformation program at the superannuation fund. It will also further investigate its expenditure management practices.
The context: APRA said Cbus pledged to undertake a holistic risk transformation program to rectify underlying behavioural, cultural and/or governance failures within its trustee, United Super, that were noted following a recent prudential review.
Cbus has committed to engaging independent experts, prepare an integrated plan, and appoint an independent reviewer. APRA will work closely with Cbus to develop a workable timeframe for the delivery of sustainable rectification under the plan.
In addition, the regulator has commenced an investigation into Cbus regarding possible breaches of the Superannuation Industry (Supervision) Act 1993, with a focus on expenditure management practices.
The regulator placed additional licence conditions on Cbus in August 2024 after public allegations regarding serious misconduct within the Construction, Forestry and Maritime Employees Union (CFMEU) and the steps taken by state and federal governments and the Fair Work Commission.
It received a final report from an independent expert on Cbus' fitness and propriety of its responsible person and fund expenditure management in November.
What they said: Cbus chief executive Kristian Fok said in a statement: "We take our responsibilities to our members very seriously and are committed to ensuring that we operate to the highest standards of governance and compliance to provide the best retirement outcomes for our members."
“While we have made progress in some areas there is more work to be done, and it must be done at pace.”
The sources: APRA media release, Cbus media release
