Amid political donation queries APRA commits to checking super fund expenditures
Just days after members of a Parliamentary committee asked the Australian Prudential Regulation Authority (APRA) what it was doing to track political donations by superannuation funds, the regulator has placed super fund expenditures on its priority list.
In a “Statement of Intent” published yesterday, APRA responded to the Government’s Statement of Expectations by nominating that it would be looking to address sub-standard practices by superannuation funds, including with respect to expenditure.
For its part, and despite suggestions that industry fund monies were finding their way via trade unions to the Australian Labor Party (ALP, the Government’s Statement of Expectations cited the need for APRA to: “ensure increased transparency of performance and expenditure in the superannuation sector”.
Detailing its approach, APRA’s statement said: “APRA will require continued improvement in superannuation transparency and efficiency, and seek to reduce the level of exposure of superannuation members to underperforming funds and funds with sub-standard practices including in relation to expenditure”.
Release of Statement of Intent and its reference to superannuation fund expenditures came barely a week after NSW Liberal Senator, Andrew Bragg, used Senate estimates to asked APRA officials about political donations flowing through superannuation funds.
Bragg had raised similar concerns about political donations during committee hearings last year.
However, when asked about the issues by the chair of the Committee, Victorian Labor Party Senator, Jess Walsh, APRA deputy chair, Margaret Cole, said that checks by the regulator with reference to the Australian Electoral Commission (AEC) had not been able to determine whether superannuation funds had made political donations.
The Government’s Statement of Expectations has reinforced its continuing commitment to the superannuation performance test which is due to be extended to choice superannuation products.
Come on APRA let’s get real, detailed expenditure by Industry Super on:
– Hidden Commissions
– Sports boxes & junket entertaining
– Political donations, direct and indirect
– Union ownership of related services and cost effectiveness of service.
– % of members paying Hidden Commissions for No Service.
Will never happen, will never be detailed, ISA are exceptional modern day gangsters in suits with APRA & ASIC free passes to act as they choose.
Don’t forget ‘gifts’ especially as ASIC’s gift register is no longer publicly available.
The only way to end the super wars is to end this money trail ending up in Labor’s coffers, or union coffers.
It would deliver increased retirement benefits for members at the same time.
Super funds only concern is to maximise investment returns for their members / investors. They should not play politics, pay political parties or unions any donations, or tell corporations what to invest or not invest in. Their job is to maximise returns and ensure their member can retire comfortably. If they don’t like an invest due to the numbers not stacking up, that’s fine however, Trustees of super funds should be reminded of their core purpose.
Might be worth taking a look to see if there are any payments from industry super insurance underwriters to unions as well… Last quote I did for a client was 2x more expensive than the retail policy we implemented…
– Hidden Commissions galore.
– Union owned / Union bosses and Related services to Industry Super $$$$$
As long as the chide it in other expenses and shift profits in their own direction. APRA & ASIC play along and pretend not to see it or even look for it.
REGULATORY CAPTURE CORRUPTION !!!!!
Who conducts the “Compliance Audit” and BID on ASIC and APRA??? Afterall, they both collect “Fees” from Advisers….. Just thought I’d ask…..
Can APRA please explain why I have to do 9 hours of ethics training a year while these mugs makle questionable payments that reek of conflict of interest and APRA have turned a blind eye for decadses, only promising to do something whern they are pushed?
We could ask the same of PWC!!!
I won’t hold my breath. APRA are more interested in making life difficult for financial advisers with their extreme, twisted interpretations of the Sole Purpose Test, which make it more costly for mums and dads to obtain advice. They couldn’t care less about Labor Party donations and subsidisation being ripped from peoples super. It suits the left-wing culture of the place.
In my opinion, the relationship between legislators and superannuation product providers has a rather unpleasant ‘whiff’ about it.
John Halfpenny, Communist, Ties with Russia, Norm Gallagher, the BLF, his Beach House??? You tell me what has changed other than the ISA Pot is a much more generous benefactor to the ALP.. My opinion only – of course