The Australian Prudential Regulation Authority (APRA) has modified the additional licence conditions imposed on the trustee.
The prudential regulator has varied the additional licence conditions imposed on BUSS (Queensland) as the trustee for The Building Unions Superannuation Scheme (Queensland) (BUSSQ).
The conditions, imposed on 13 August 2024, required BUSSQ to appoint an independent third party to review its fit and proper processes and expenditure management practices.
This was in response to concerns regarding serious misconduct within the Construction, Forestry and Maritime Employees Union (CFMEU), following which APRA ordered a review of BUSSQ’s four CFMEU-appointed directors.
At the time, the prudential regulator said it imposed additional licence conditions on both BUSSQ and United Super, the trustee for Cbus, to address concerns regarding “fitness and propriety processes and fund expenditure management”.
Citing public allegations of serious misconduct within the CFMEU and subsequent steps taken by governments and the Fair Work Commission, APRA said it “is concerned about the potential impact on trustees”.
According to a statement from APRA on Thursday, the conditions have been varied to update the time frames for BUSSQ’s compliance, to provide additional detail to BUSSQ about the operation of the conditions, and to enable the work contemplated in the conditions to be commenced by BUSSQ as soon as possible.
The regulator confirmed that BUSSQ was afforded procedural fairness in relation to the variation.
“APRA imposed the conditions to safeguard the interests of members, to ensure APRA’s prudential concerns could be addressed effectively and expeditiously, and to ensure transparency in BUSSQ’s response to APRA’s concerns,” it said.
The announcement follows BUSSQ in August last year applying to the Federal Court for judicial review of APRA’s decision to impose the conditions.
At the time, the prudential regulator agreed to suspend the effect of the conditions until the court’s determination on the matter, on the basis BUSSQ requested an expedited hearing.
However, His Honour Justice Derrington dismissed BUSSQ’s application, and on 20 February ordered BUSSQ to pay APRA’s costs. BUSSQ appealed Justice Derrington’s decision on 18 February 2025.
“BUSSQ has informed APRA that it has decided to discontinue its appeal, and BUSSQ has undertaken to APRA to commence the work contemplated by the varied conditions,” APRA confirmed in Thursday’s update.
