APRA response to Cbus board announcement
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.
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The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.