Industry funds warned on related party deals
Industry superannuation funds have been warned by the Australian Prudential Regulation Authority (APRA) that the regulator has taken on board evidence given during the Trade Union Royal Commission and that funds will need to carefully review and monitor related party arrangements.
In a clear reference to member information being provided to the Construction Forestry Mining and Energy Union (CFMEU) by industry fund CBus and the use of union-employed member liaison officers, APRA member, Helen Rowell made clear the regulator was cracking down on such practices and would be closely examining related party arrangements.
Addressing the Conference of Major Superannuation Funds (CMSF) on the Gold Coast, Rowell said APRA would not only be taking a close look but would be expecting that fund trustee boards would be able to demonstrate an understanding of what was being established and any conflicts that were likely to arise.
"We would encourage all trustees to have a long, hard look at such arrangements," she said referring to APRA's willingness to look at such arrangements.
On the broader question of governance, Rowell said it was APRA's view that the appointment of independent directors helped in identifying and avoiding such problems.
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