APRA mulls further action on Cbus
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The news: The prudential regulator has hit back at Cbus, saying it has not received the independent review report regarding the additional licence conditions imposed on the fund. This follows Cbus’ announcement that an independent review confirmed its directors were fit and proper.
The Australian Prudential and Regulation Authority (APRA) noted that it will consider whether further action is appropriate.
The context: Today, Cbus announced that all its “existing and new directors” had satisfied a ‘fit and proper persons test’ as part of an ongoing independent review being conducted by Deloitte at the direction of APRA.
The superannuation fund also confirmed the appointment of three directors nominated by the Construction, Forestry and Maritime Employees Union (CFMEU):
- Paddy Crumlin — the national president of CFMEU;
- Jason O’Mara — the general manager of operations at the Canberra Tradesman Union Club; and
- Lucy Weber — the director of legal and industrial programs in the national office of the CFMEU.
However, APRA issued a statement following Cbus’ announcement that said it was “not yet satisfied that the processes required to be undertaken by Cbus under the licence conditions are complete”.
The regulator said it expected the super fund to provide the independent review report in accordance with the licence conditions.
APRA noted that “in light of decisions announced today by the Cbus board, [APRA] will consider whether further action is appropriate”.
In August, the regulator placed additional licence conditions on Cbus after recent public allegations regarding serious misconduct within the CFMEU and the steps taken by state and federal governments and the Fair Work Commission.
What they said: “After applying a comprehensive ‘fit and proper persons test’ the Cbus Board confirmed the appointment of the three directors who share a determination to generate the strongest, sustainable financial returns for members and deliver the best possible service,” a Cbus spokesperson said.
“The board is committed to further enhancing its collective skills mix to ensure it is well positioned to approach increasingly complex investment, market and regulatory environments.”
The sources: APRA media release, Cbus media release
