Federal Opposition maintains pressure on industry funds
The Federal Opposition is continuing to ramp up pressure for closer scrutiny of industry superannuation funds and their use of contingency reserves to meet the cost of regulatory fines.
NSW Liberal Senator, Andrew Bragg, announced he had succeeded in gaining the support of the Senate cross-bench to have the Australian Prudential Regulation Authority (APRA) reveal instances of where it had been involved in superannuation funds seeking to utilise section 56 of the Superannuation Industry (Supervision) Act (SIS Act).
Section 56 covers the use of trustee risk reserves which can be used to pay for fines and was generated out of the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Sector.
The initial legislation prevented the trustees and directors of a superannuation fund from using its assets to pay a criminal, civil or administrative penalty incurred as a result of contravening a Commonwealth Law.
The legislation was later amended by the current Labor Government and result in a flurry of legal activity on the part of industry funds seeking court approval for the amendment of their trust deeds to enable them to establish ‘risk reserves’ via member fees.
APRA did not oppose changes sought by the superannuation funds which included AustralianSuper and said it had acted as a “friend of the court”.
Bragg has taken issue with the actions of the industry funds and yesterday suggested that, with the support of the Senate cross-bench, it would soon be known “how the owners of super funds wriggled their way out of fines”.
As a result, the Government will need to provide to the Senate any briefs prepared by APRA’s General Counsel dealing with section 56 along with briefs prepared in relation to the regulator’s appearance in legal proceedings brought by super funds to change their trust deeds and any submissions made by APRA to those courts.
The Government has been given until next Tuesday to produce the documents.
We’re all in this together hey Industry Super members.
Industry Super Trustees, Union & Bikie representatives clip the members funds as and when they want.
And when caught doing the wrong thing.
Or often not doing anything at all for death benefit & insurance claims.
You bet yah the Members Pay the Fines.
Not the Trustees, Union or Bikies, they pay nothing.
Another corrupt behaviour using the Super Funds of Australians in Industry Funds Super(I.e. HESTA, CBus, Australian Super). Fines and penalties should not be funded by members fees.
The Directors should be directly penalised when they are fined not the members. If members have been directly impacted by this behaviour then they need to be informed directly, and directly compensated. Then directors responsible need to repay these debts to the government via their own personal assets. That’s the correct way to do this. Not by ripping off members funds. The deeper you deep the more corruption appears in Industry funds that deal with trillions of dollars of Australians retirement money. They cannot be trusted, the Inions can’t be trusted with their links to organised crime and bikies, and the Labour Party directly benefit from these union based industry funds.
It’s about time these funds break loose of the dodgy union members, and the dodgy Labour Party. There should also be a ban on any ex government officials getting on the boards of these organisations.
Time for a Royal commission into the running of Industry Funds!!!!