APRA promises to publish super expense data

Amid the furore surrounding superannuation fund relationships with trade unions, the Australian Prudential Regulation Authority (APRA) has declared it will later this year publish new expense data on how members’ funds are spent and invested by trustees.

The promised APRA data is expected to be closely scrutinised by Coalition parliamentarians who have raised questions about payments from superannuation funds to trade unions and have specifically asked the regulator to explain the payments.

However, APRA has steadfastly refused to comment on “entity-specific matters” notwithstanding the fact that Opposition senators have specifically referenced Cbus, AustralianSuper and First Super and unions such as CFMEU, the Australian Workers Union, and the Australian Services Union.

While refusing to provide detail on “entity-specific matters” APRA said it would later this year be publishing new expense data “on how members’ funds are being spent and invested by trustees”.

“Using this new data collection, APRA has established a process to identify and review expenditure which may evidence a Best Financial Interest Duty (BFID) concern,” APRA said. “Following identification of any concerning expenditure practices APRA will escalate these matters further as appropriate.”

APRA yesterday announced that it had imposed additional license conditions on both Cbus and Queensland-based building and construction industry fund, BUSSQ in relation to allegations of misconduct within the Construction, Forestry and Maritime Employees Union.

Under the additional license conditions the two funds are required to engage an independent expert to conduct a review “in relation to the requirements under Prudential Standard SPS 520 Fit and Proper and the trustees’ compliance with the duty to act in the best financial interests of beneficiaries of the funds in making expenditure decisions”.