Queensland-based super fund BUSSQ has sought a judicial review in the federal court regarding APRA’s recent decision to impose additional licence conditions on the fund.
On 14 August, APRA introduced the conditions on BUSSQ due to concerns of its relationship with the Construction, Forestry and Maritime Employees Union (CFMEU).
The Construction, Forestry, Mining and Energy Industrial Union of Employees, Queensland (CFMEU-Q), a separate legal entity to the CFMEU, is a shareholder of BUSSQ and has appointed four directors to its eight-member board, three of whom are also CFMEU officers.
Megafund Cbus was also hit with the same conditions over its relationship with CFMEU.
Cbus and BUSSQ were each required to conduct an independent review in relation to the requirements under Prudential Standard SPS 520 Fit and Proper and the trustees’ compliance with the duty to act in the best financial interests of beneficiaries of the funds in making expenditure decisions. The final findings were to be made public.
Responding to APRA action at the time, BUSSQ chair Chris Taylor said “APRA are seeking to use licence conditions to force a review of issues that have been examined at length by APRA over the past two years, without any negative findings”.
The regulator said on Friday it will contest the application. APRA has agreed to suspend the effect of the licence conditions until the court’s determination of this matter, on the basis that BUSSQ has requested an expedited hearing.