Big building industry super fund CBus has argued its board members require extensive knowledge of the construction industry.
The superannuation fund has resisted recent calls for more independent directors by claiming the trustees of such funds should have knowledge of the industry the fund covers.
The chief executive of CBus, David Atkin, said the fund strongly supported such criteria, which had been advanced by the Industry Super Network.
He said such criteria would ensure trustees’ knowledge and experience of the characteristics of the construction industry would be used in the interest of Australians working in the relevant industry.
"Our trustees’ detailed first-hand knowledge of the construction industry has ensured that unique challenges we have faced have been resolved for the benefit of our membership," Atkin said.
He said it was that detailed knowledge which had led to the fund’s unique compliance process which reflected the working of the industry, together with an insurance product which provided high levels of death and TPD.
The CBus position – outlined in a submission to the Productivity Commission review of default funds under modern awards – runs counter to arguments that such funds need independent directors to lift their standards of corporate governance.
