BUSSQ defiant despite APRA court win

Big industry fund Cbus may have complied with the Australian Prudential Regulation Authority’s (APRA’s) imposition of additional license conditions but its sister industry fund, BUSSQ, is continuing to question the validity of the regulator’s actions.

APRA imposed the additional license conditions on BUSSQ in August, last year, due to concerns over its relationship with the Construction Forestry and Maritime Employees Union (CFMEU) and last Friday dismissed BUSSQ’s application for a judicial review of the APRA decision.

However, BUSSQ’s formal response to news of the Federal Court’s decision made clear that the industry fund does not believe that the Court’s decision necessarily validates APRA’s approach.

The chairman of BUSSQ, Chris Taylor said the fund maintained that APRA itself, rather than an external party, was best-placed to undertake any review of BUSSQ and that license conditions are not necessary.

“We will be reviewing the decision and looking at our options noting that the court has not ruled that the licence conditions are valid,” he said.

“BUSSQ has looked after the retirement savings of construction and civil workers in Queensland for 40 years and remains committed to our members and looking after their retirement savings with the highest levels of governance.”

The fund said it maintained that it operates “with robust governance processes and frameworks to ensure it is fulfilling its fiduciary obligations lawfully at all times, including the fitness and proprietary provisions for Board directors and approval of fund expenditure”.

The additional license conditions imposed on Cbus by APRA resulted in the so-called Deloitte report which outlined failings on the part of superannuation fund, including failures around meeting members’ best financial interests duties.

Because BUSSQ sought the judicial review of APRA’s move to impose additional license conditions, the regulator suspended its action until the court’s final determination.

APRA deputy chair, Margaret Cole said the regulator “will now move expeditiously to make sure the work required by the additional licence conditions is completed”.

“APRA intends to progress the work contemplated by the additional licence conditions as quickly as possible, subject to any applicable review process,” Cole said.