BUSSQ finally faces into APRA license conditions

Queensland based construction industry fund BUSSQ has been given more time to comply with the additional license conditions imposed by the Australian Prudential Regulation Authority (APRA) after the fund discontinued its legal appeals.

But, at the same time, APRA has reminded BUSSQ of its obligations stating that the extra time granted is a result of the regulator affording the fund “procedural fairness”.

The additional license conditions were originally imposed on BUSSQ in August last year,  the same time as similar conditions were imposed on Cbus which has complied with the APRA action.

The APRA statement pointed out the conditions, imposed on 13 August 2024, require BUSSQ to appoint an independent third party to review BUSSQ’s fit and proper processes and expenditure management practices.

“The conditions have been varied to update the timeframes for BUSSQ’s compliance, to provide additional detail to BUSSQ about the operation of the conditions and to enable the work contemplated in the conditions to be commenced by BUSSQ as soon as possible. BUSSQ was afforded procedural fairness in relation to the variation,” APRA’s statement said.

“APRA imposed the conditions to safeguard the interests of members, to ensure APRA’s prudential concerns could be addressed effectively and expeditiously, and to ensure transparency in BUSSQ’s response to APRA’s concerns.”

“In August 2024, BUSSQ applied to the Federal Court for judicial review of APRA’s decision to impose the conditions. APRA agreed at that time to suspend the effect of the conditions until the Court’s determination of the matter on the basis BUSSQ requested an expedited hearing. His Honour Justice Derrington dismissed BUSSQ’s application and on 20 February 2025 ordered BUSSQ to pay APRA’s costs. BUSSQ appealed Justice Derrington’s decision on 18 February 2025.

“BUSSQ has informed APRA that it has decided to discontinue its appeal and BUSSQ has undertaken to APRA to commence the work contemplated by the varied conditions.”