APRA orders spending review for CFMEU-linked super funds Cbus, BUSSQ
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The news: The Australian Prudential Regulation Authority (APRA) has ordered a spending review for two superannuation funds with links to the embattled Construction, Forestry and Maritime Employees Union (CFMEU).
The numbers: The prudential regulator has imposed additional licence conditions on United Super, which is the trustee for the Construction and Building Unions Superannuation Fund (Cbus), with 923,000 members and $92 billion in funds under management, as well as BUSSQ, which is the trustee for the Building Unions Superannuation Scheme and the BUSS (Queensland) Pooled Superannuation Trust with 73,000 members and $6.7 billion in funds under management.
The context: Under the additional licence conditions, both trustees are required to get a review conducted from an independent expert in relation to their compliance with the duty to act in the best financial interests of beneficiaries of the funds in making expenditure decisions.
APRA said the decision comes after recent public allegations regarding serious misconduct within the CFMEU and the steps taken by state and federal governments and the Fair Work Commission.
The allegations raise matters of significant public interest, and United Super and BUSSQ will be required to publish the independent expert reports to provide transparency and reassurance to members, APRA said.
The federal government is legislating for the power to impose an administrator on the general division of the CFMEU after recent allegations the union had been linked to bikie.
What they said: Cbus CEO Kristian Fok said: "Cbus Super has today supported APRA’s announcement that the fund undertakes an independent review of our board governance and expenditure arrangements to ensure that they remain appropriate and in the best financial interests of our members".
"...We note the allegations of criminal activity in the building and construction sector, and we condemn such activity. We support efforts by governments, regulators, and union organisations to eradicate such criminal behaviour," he said.
The source: APRA media release
