During a House of Representatives standing committee on economics meeting on Friday, Liberal MP Tim Wilson took APRA to task on why it was not aware of the behaviour of EISS Super, which reportedly spent thousands of dollars on football advertising and overseas trips.
“We have EISS indulging in, well, frankly what verges on corruption, as far as I’m concerned,” Mr Wilson said.
“This is deeply questionable behaviour.”
EISS was also one of the 13 funds that failed the government’s inaugural performance test last month.
“All this says to me is it puts to bed the lie that was perpetuated since the Hayne royal commission that some of these super funds are all… doing things in the best interest of their members,” Mr Wilson continued.
“Most of them are an indulgence of various funds, seeking to use members’ money, to suit their personal benefit in different ways and this is a classic example of it and it’s scandalous.”
APRA agreed that EISS’ behaviour was “egregious” and is considering taking action against the fund.
Mr Wilson’s comments came after EISS CEO Alex Hutchinson resigned on Thursday.
“EISS Super is filled with incredibly talented people who are highly dedicated and more than capable of completing the merger transaction. Given the industry challenges ahead, it is good to know that EISS Super is in safe hands,” EISS chairman Dr Warren Mundy said in a statement given to ifa sister brand InvestorDaily.
“Alex has requested that his resignation be effective immediately, which I respect and have agreed to.”
EISS’ CFO, Lance Foster, will assume the role of acting CEO.
What about Host Plus sponsoring the Melbourne Storm a few years ago?? Not sure how that was in the benefit of members
A disgraceful waste of other peoples’ money – which is rife right throughout the Financial Services Industry.
I find it quite ironic that Tim Wilson is talking about corruption though. Maybe he should have a chat to Angus Taylor, Barnaby Joyce and a few others in his party…?
Geeez…that’s surprising, not. This type of behaviour is in-grained across the industry super funds and ASIC, as usual are happy to turn a blind eye to it all…..disgraceful!!
The drivel from EISS senior management is comparable to the self-congratulating drivel from some of the big retail funds before the hammer of the Royal Commission came down.
But where is the hammer now?
Sold on e-bay to refund someone’s tax bill and accomodation allowances…