Senator questions industry funds’ media outlet
The Nationals Senator for NSW John Williams has asked the corporate regulator to look into the potential conflict of interest in the establishment of a new media outlet fully funded by three industry super funds.
The Australian Securities and Investments Commission (ASIC) chair and deputy chair, Greg Medcraft and Peter Kell, appeared before Senate Economics Legislation Committee earlier this week, where Senator Williams raised the question about The New Daily, an online newspaper that was established and financed by AustralianSuper, Cbus and Industry Super Holdings.
The Senator asked on what basis did the regulators consider that the trustees of the three industry superannuation funds were meeting the sole-purpose test by investing in an online media company.
"Does ASIC have concerns in relation to a rise in conflict of interest of trustees choosing to invest in what seems to be, at best, a very marginal investment option being an online media company and, at worst, a blatant conflict of interest to promote their own views on superannuation," Senator Williams asked.
Assistant Treasurer and Liberal Senator for NSW Arthur Sinodinos asked members of these superannuation funds sought to have the media outlet established, or whether the decision had been made for them.
"Why would members ask to set up a newspaper given what we have heard in the last two years on the profitability of newspapers, if you look at Fairfax et cetera," Williams said.
"I think it would be more of a political issue than looking for a return; hence I ask Mr Medcraft and his organisation to have a very close look at that and see what comes out and whether it needs any direct attention from ASIC."
Medcraft said he was aware of the new website due to the media coverage it attracted in mainstream press, taking the questions posed by the Senator on notice.
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