The directors of the eligible rollover fund (ERF) owned by the industry funds paid its directors a total of $225,000 last financial year, some of which found its way to Industry Super Australia (ISA).
Under questioning within the Senate Economics Committee, the Australian Prudential Regulation Authority (APRA) has revealed that the industry funds ERF, AUSfund, has six directors all of whom were paid in their personal capacity but one of whom, ISA deputy chief executive, Roberta Campo, had her director fees paid to the ISA.
APRA had been responding to questions on notice from Tasmanian Liberal Senator, David Bushby who had asked APRA officials to confirm the remuneration arrangements for AUSfund directors and whether AUSfund was, in fact, a “retail for-profit superannuation fund”.
Bushby asked whether the fees earned by AUSfund directors were passed to either ISA or the Australian Council of Trade Unions (ACTU) or another union.
“If it is passed on, that would suggest that the union or the industry fund or lobby group, as appropriate, would be receiving money that is generated from a retail for-profit superannuation fund,” he suggested.
In its answer to the question on notice, APRA said that, according to the 2015/16 financial statements for AUSfund, “all directors are paid in their personal capacity, with the exception of Ms Roberta Campo, whose director fees were paid to Industry Super Australia Pty Ltd”.
However, in doing so, it directly referred to the elements of corporate control utilised by the industry funds, stating that: “The rules relating to the nomination, appointment and removal of directors are determined by each RSE licensee. According to the RSE licensee’s Constitution and Board Charter, directors of Industry Funds Investments Ltd must also be directors of Industry Funds Services Ltd. The directors of Industry Funds Investments Ltd and Industry Fund Services Ltd are appointed by Industry Super Holdings Pty Ltd. This process is governed by a Directors Nomination Committee and a vote of the shareholders of Industry Super Holdings Pty Ltd”.
Industry Super Holdings Pty Ltd is owned by 28 industry superannuation funds.