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APRA unclear on union liaison officer status
Questions from a Liberal Senator have raised doubts about the use of union-based superannuation liaison officers.
The Australian Prudential Regulation Authority (APRA) has placed a question mark over the future of Union liaison officers by some industry superannuation funds pointing out that they fulfill no formally recognised role.
APRA was responding to a question on notice from Tasmanian Liberal Senator, David Bushby who had asked whether the regulator was aware of some industry funds providing funding for the superannuation liaison officers attached to particular trade unions.
The regulator said that while it was aware of the liaison officer positions their existence was not consistent with the "responsible person" definition under the prudential standards.
APRA noted however that it understood the liaison officers were involved in enhancing engagement in superannuation through direct contact and it was therefore likely their existence was not in conflict with the sole purpose test.
However, the regulator went on to indicate that the payment of the liaison officers might raise issues with respect to related party transactions and perceptions of conflict of interest.
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