No explicit rules on super fund anniversary events says APRA
The Australian Prudential Regulation Authority (APRA) has no fixed position on superannuation funds spending money on events such as fund anniversaries.
Specifically asked about big construction industry fund Cbus spending $387,000 to celebrate its achievements over 40 years, APRA said “there are no explicit rulings or rules which specify whether expenditure relating to anniversary events is or is not in members best financial interests”.
APRA had been asked by NSW Liberal Senator, Andrew Bragg, about the Cbus expenditure and asked, “what is the normal expectation on expenditure for an anniversary event?”
He also asked whether it satisfied the best financial interest duty.
“Could you provide a ruling on the 40th birthday event that was recently held by Cbus? o Have you asked Cbus to justify the $387,000 cost of their 40th birthday party?
“Are you aware of any other super funds having had birthday parties/events for their funds, and if so, do these meet BFID standards?” Bragg asked.
APRA pointed to Superannuation Industry (Supervision) Act and its Prudential Standard SPS 515 aimed at ensuring expenditure decisions are consistent with the best financial interests of members.
“APRA’s guidance makes clear that we expect trustees to have appropriate expenditure management processes and frameworks in place to support rigorous assessment of expenditure,” its formal answer to Bragg said.
“BFID is concerned with whether a trustee’s decision is reasonably justifiable considering the circumstances that existed at the time of the decision. BFID does not specify acceptable types or circumstances where expenditure would be considered in members best interests, with the onus of this assessment being on the trustee.”
“As a result, APRA can confirm there are no explicit rulings or rules which specify whether expenditure relating to anniversary events is or is not in members best financial interests.”
APRA fail yet again to regulate best buddies Industry Super.
Cbus Union & Bikie bosses party it up on members expenses for nearly $400k and APRA do NOTHING.
Two-tiered system in my opinion.
Imagine if a retail fund or a bunch of advisers used client money to have an anniversary party.
Add this to the list of Canberra’s greatest hits.
“As a result, APRA can confirm there are no explicit rulings or rules which specify whether expenditure relating to anniversary events is or is not in members best financial interests.”
Yeah probably because the assumption was that trustee’s wouldn’t take the pi55
APRA, please name 1, just 1 possible tangible benefit for the member for throwing a $400k party?
I can name a few SIS rules, including the Best Interest Rule. What benefit did the clients actually receive from everyone having a boozy night out? You can’t claim to act in the best interest of members when others benefit first, and only the leftovers go to them.
How the hell does a party for Directors and their families in any way relate to the Best Interests of the members of these Super Funds. A Party the members aren’t even invited to!!!
There lavish spending is theft from its members, nothing more, nothing less. There is no way it can be justified.
Do these Funds even understand the business they are in. Charge less fees and pay for your own Christmas Party like other business’ via a self-funded social events fund. Stop ripping off members.
This is just so typical of these people(i.e. Union based Funds, Labour Party mates). These people are so used to using Government Funds for their own pleasure. Its a typical Labour party and Union based mindset of Spend, Spend, and Waste other peoples money. This is why every time labour comes to power our debt goes through the roof and the countries credit is maxed out. Its like giving your credit card to a 12 year old and saying go for your life. I mean remember Kevin 07 he thought he could go to strip clubs on the public purse, and the backstabber Gillard throwing around Billions as if it were pocket-change. The only thing she achieved was to double the Prime Ministers salary. With the exception of the changes Keating made these dimwits couldn’t run a chook raffle. This is why the country is never better off after a labour government, and the unions and the enterprises they are involved with(i.e. Industry Super) have the same attitude to the use of ‘other peoples money’. If you even have to ask the question about the Best Interest of the members you are corrupt.