Super funds to list payments to industry bodies

Superannuation funds will have to provide members with an itemised list of payments made to industry bodies or trade associations if the Government’s proposed Your Future, Your Super reforms are implemented. 

In an answer to a question on notice to the House of Representatives Standing Committee on Economies, the Australian Prudential Regulation Authority (APRA) said while it did not collect data on annual payments to industry associations by registrable superannuation entities, data would be part of a collection being implemented from 1 July, 2021.  

The first reporting was due 30 September, 2021 and would be reported at the industry body level. 

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The answer was to the question was posed by NSW Liberal backbencher, Jason Falinski, who asked how much money industry superannuation funds gave to Industry Super Holdings (ISH) and the industry super association. 

APRA said it was “unaware of the original capital unput (if any) into ISH by the 27 funds. It is APRA’s understanding that no subsequent financial contribution has been made to ISH by the 27 funds. 

“ISA manages collective programs on behalf of 15 industry Australian superannuation funds… APRA understands that in the financial year 2019-20, ISA’s total revenue was $23 million generated from the 15 funds, determined by several factors including funds under management and the number of accounts held by a fund.” 

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And how much funding goes directly or indirectly to the Labor Party?

They will need to also include directors wages for stacked boards - up to 20 directors on a board is a great way of funnelling money to unions with very little scrutiny - and 'sponsorship' for union conferences that may or not happen.
The unions are very good at helping themselves to members money.

Don't forget that half of the membership of industry super boards are employer representatives ie the bosses or bosses' representatives.

These employer representatives will do as they are told (with members money - not theirs) if they don't want any union stop work fun and games?

You have got to be kidding or totally ignorant given the likes of some of the directors from employer groups. They are directors under Federal and State laws such as the Corporations Act and are bidden to act as company directors within those laws. Directors who dont tend to get found out and get fined/imprisoned. Seems like you have never been a director of a company.

I tend to agree with Hedware.

"They are directors under Federal and State laws such as the Corporations Act and are bidden to act as company directors within those laws. Directors who dont tend to get found out and get fined/imprisoned"
Why do you keep trying to make other believe Industry Super is anywhere near OK?

Or the fund should be deemed non-complying due to breaching the sole purpose test.

Oh no!!
APRA has been caught asleep at the wheel again.
Pity they have not opened their eyes to this and the Sole Purpose Test until they have been forced. Members retirement money being wasted on political whims of those running the Industry Funds

Political whim? Like pushing govt (who resisted for too long) for a Banking Royal Commission...what a waste of money and time that was. Banks exposed for charging dead people, fees for no service, fee gouging MySuper products. You are right though, fund members shouldn't be funding this work, just need effective regulators doing their job and a govt who isn't using super like a piggy bank to prop up the economy.
Seems we have short memories, mandatory super had to be fought for and with certain members of govt questioning the validity of mandatory super, there continues to be a need for a voice for low and middle income earners and their right to a dignified retirement.

Won’t happen

I wonder if you could create your own advertising/research company, then pay them heaps of money for their product. they could then support other organizations such as industry bodies etc. APRA disclosure - nil money paid to industry body! I wonder if APRA would be able to manage tracing money through other (non regulated) entities???

How about a 10 year look back APRA.
Full disclosure of all payments to Industry Super or Unions or Labor Govt.
Full disclosure of all payments to related entities.
Full disclosure of conflicts of payments to related entities.
Full disclosure of Intra Fund & General Advise Sales charges.
Full disclosure of % of members who actually get any Advice. And thus full disclosure of the % of members who pay Hidden Commissions for NO ADVICE.
Yeh sure as if APRA will ever do anything against best buddies Industry Super.

Will that show related entities...i,e AwareSuper, TelstraSuper financial advice businesses paying fees to the quote "help shape the direction of advice in Australia. "

It seems to me that everyone wants to bring into the argument excuses based on the fact that Banks or Employer funds (Telstra etc) don't necessarily act ethically either, and employer representatives on Boards will keep the Industry Funds honest.
Well we should be focussed on requiring all funds to act in the best interest of members because they are wasting members' retirement benefits contrary to the SIS legislation.

Just look at the extent of the use of members retirement money being used towards tv advertising or sports promotions, or funding for political purposes:

"The AustralianSuper answer revealed that the fund directed $3,533,953 in the 2015/16 financial year, $4,774,000 in the 2016/17 financial year, $5,454,000 in 2017/18, $5,187,000 in 2018/19 and $5,070,317.
By comparison, big hospitality industry fund, Hostplus revealed its contribution for only the 2020 financial year – being $3.6 million.
Industry Super Australia is owned by 15 industry superannuation funds with Money Management reporting last week that NGS Super paid ISA $619,050 in 2019/20, after having paid the industry funds body $633,328.84 the previous financial year and $626,526.64 in 2017/18".
These are significant amounts of members' retirement money!! How do they get that back?

Well we are getting what we thought we wanted, a competitive super industry. I'm not sure you can argue that consumers must choose their own fund and then in the same breathe say funds cannot advertise to attract new members. For a fund to be viable, and hence be able to properly manage the funds of existing members, they need to grow. Imagine in any other industry you saying, yeah sure run your business but you cannot promote what you do...its a ridiculous argument.
Market forces if left to do their thing (with the help of APRA heatmap) will identify those funds whom are best at managing commercial needs of business and providing return to members.

I am happy for you to pay for all of this advertising.
But don't use my retirement funds to promote the fund to everyone else in Australia. I prefer to retain my funds for my own retirement benefits. There are so many industry funds all of whom are well known through employment arrangements. The fact is their spending still contravenes the legislative purpose of Superannuation.

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