CFMEU Cbus nominees satisfy proper persons test

Under pressure industry superannuation fund Cbus has gone to the trouble of issuing a statement declaring that all existing members of its trustee board have satisfied the proper persons test conducted by Deloitte at the direction of the Australian Prudential Regulation Authority (APRA).

The super fund noted that the three directors nominated by the under-administration Construction, Forestry and Maritime Employees Union (CFMEU) were part of having satisfied the test.

For its part APRA issued a statement noting that Cbus had yet to satisfy all requirements under licence conditions imposed earlier this year.

The Cbus statement said:

“After applying a comprehensive ‘fit and proper persons test’ the Cbus Board confirmed the appointment of three directors nominated by the CFMEU.

The CFMEU can nominate 3 of the 14 positions on the Board. Those confirmed are:

• Paddy Crumlin – In addition to his ongoing advocacy for working people, Paddy has built up extensive skills and experience oversighting contemporary investment and asset management strategies of pension funds, ESG, responsible investment, and fund regulation. Paddy is currently the National President of the CFMEU.
• Jason O’Mara – Jason has extensive experience in super fund governance, tax and financial reporting. Jason rejoins the Cbus board having previously served between January 2022 and August 2024. Before he was an advocate for workers’ entitlements, Jason was a commercial builder and is currently the General Manager of operations at the Canberra Tradesman Union Club.
• Lucy Weber – As a senior qualified lawyer Lucy brings extensive legal expertise and has over seventeen years’ experience practicing law in the private and not-for-profit sectors with comprehensive knowledge of insurance and industrial law. Lucy is currently the Director of Legal and Industrial programs in the national office of the CFMEU.

A statement attributed to a ‘Cbus spokesperson’ said the three directors “share a determination to generate the strongest, sustainable financial returns for members and deliver the best possible service”.

“Maintaining equal employer and union representation has been central to our success over forty years so we’re happy to welcome Jason back and look forward to Lucy and Paddy bringing their knowledge of our sectors to achieve the best possible retirement outcomes and meet the challenges of rapid growth.,” the statement said.

The APRA statement said:

“The Australian Prudential Regulation Authority (APRA) is aware that United Super, the trustee for the Construction and Building Unions Superannuation Fund (Cbus), has announced new appointments to its board.

“Appointments to the board are the responsibility of the trustee. APRA does not have powers to approve or prevent board appointments.

“However, as previously announced, APRA has imposed licence conditions on Cbus, requiring the trustee to engage an independent expert to conduct a review in relation to the requirements under Prudential Standard SPS 520 Fit and Proper and the trustee’s compliance with the duty to act in the best financial interests of members of the fund in making expenditure decisions. The independent review is required to cover fitness and propriety policies, practices and decisions made as they relate to both existing directors and appointees to the board.

APRA is not yet satisfied that the processes required to be undertaken by Cbus under the licence conditions are complete. APRA expects Cbus to provide the independent review report in accordance with the licence conditions and, in light of decisions announced today by the Cbus board, will consider whether further action is appropriate.”