A Brisbane-based financial planner has caused a stir by using an internet post to point to the numbers of directors on industry superannuation fund boards and how much union-nominated directors are being paid.
Philip Burke of Entrust Solutions has used an Association of Financial Advisers (AFA) forum to claim that industry funds warrant closer regulatory scrutiny, particularly those most closely aligned to Industry Super Australia (ISA).
“There are 15 funds that make up Industry Super Funds, you know that group that ‘don’t pay sales commission’,” Burke wrote. “I had a look at a selection of these recently. Their annual reports are full of interesting things, sometimes the most interesting is what they don’t tell.”
“For example did you know how many trustee directors each fund has or where the director’s fees go?”
Burke then itemised the number of directors on each industry fund board and the amount paid in fees to union-nominated directors – CBUS 16 directors ($312,161 to union-nominated directors), Australian Super 11 Directors ($331,658 to union nominated directors), LUCRF 12 directors (Not Disclosed), HESTA 13 directors ($237,309 to union-nominated directors), HostPlus 9 Directors (Estimated $300,000), CARE 13 Directors (Not Disclosed) and TWU 9 directors ($95,000).
Burke said that, by contrast, the boards of some of Australia’s major publicly-listed companies were much smaller and nominated AMP Limited with nine directors, Westpac with eight, ANZ with eight, BHP with 13 and the Commonwealth Bank with 11.
“The question arises as to why the industry funds require so many Trustee board members? Are they there to benefit the members or the unions?” Burke asked.
