As part of questions on notice for the House economics committee’s inquiry into the super sector, Tim Wilson, who chairs the committee, asked industry funds to divulge the dollar amounts they had contributed to Industry Super over the past five years.
The Liberal MP has been a strident critic of the industry funds sector, with ISA accusing him of conducting a political witch-hunt against it through his interrogation of funds at committee hearings.
Construction industry fund Cbus revealed it had contributed more than $17.5 million to Industry Super over the past five financial years, for joint projects with the body including marketing campaigns, research, policy development and government relations.
The fund said it viewed the joint marketing campaign conducted on behalf of Cbus and 14 other industry funds, as well as Industry Fund Services and ME Bank, as “a cost-efficient and highly effective marketing program which has generated significant value, beyond what any individual fund, including Cbus, could have achieved by acting alone”.
Meanwhile, AustralianSuper reported it had contributed just over $24 million to the industry fund advocacy group from the 2016 financial year to the 2020 year.
Professional services industry fund CareSuper revealed it “engages the services of a number of entities” within the Industry Super Holdings group of companies, including investment and fund administration services, but that “non-investment transactions” related to these companies totalled just over $2 million in the 2020 year and almost $3 million in 2019.
CareSuper attributed these costs to advertising, financial advice, credit control, insurance consulting and broking.
“All transactions were made on normal commercial terms, under normal conditions and at market rates,” the fund said in its 2020 financial accounts.
Equipsuper reported that it had also made smaller annual contributions to the advocacy group, totalling around $1.8 million over five financial years.
So zero difference to the retail funds who use internal custodians/trustees etc and pay fees accordingly.
ASIC anything to see here ? Nope
APRA anything to see here ? Nope
What, it’s Industry Super our best buddies, they can do what ever rorting and corruption they like
Tim Wilson should be Treasurer. Frydenberg & Hume are a complete waste of space.
HOW MANY YEARS HAS IT TAKEN FOR A POLITICIAN TO ASK THIS QUESTION THAT WE HAVE ALL KNOWN ABOUT FOR OVER A DECADE!!!!!!!!!!!!!!!!!!!!!!!!!
I know. Liberals are completely useless. Only thing for it is to stick it back.
The Industry Fund ads have now become political/partisan – with the use of members funds. How is this allowed ?
Lots of lobbying money to ensure their opt-in free “intra-fund advice” vertically integrated marketing rep racket continues. Their investment into ISA seems to be working well so far. So much for the sole purpose test.
Wow, we are talking about $100 million dollars. No wonder they can do wall-to-wall advertising. I wonder why industry funds would pay such very large amounts that give them no direct benefit.
What indirect benefit is so large that it is worth $100 million dollars?
Tim Wilson is merely asking the questions Hayne did NOT ask of ISA’s cohorts in the RC!
This is a really good point. Why wasn’t this asked at the RC?
Disgusting behavior. Seems commissions being used to market your super funds are unacceptable but “free advice” subsidized by others and a Bribe to a political party or Union is totally ok
Wow, this is going to tally up to a lot of money. The question is, where does the money go once Industry Super have it? and is this really in the best interests of their members?
Answer: The Labor Party to fund election campaigns.
About 80% goes to Labor…the other 20% goes in “marketing expenses”
How does all this meet the sole per purpose being providing retirement test
$17.5M from CBus in 5 years !!!!? Oh my god, and that is just one fund!!! WTF was Kenneth Hayne doing? All that effort he brought to bear on vulnerable employed and small business financial advisers, yet this racket was going on? I recall him laughing with industry fund executives who appeared on the stands with a grin from ear to ear. There was something seriously wrong with that Royal Commission.
What more proof does ASIC (and the government) need to actually spend one second investigating the union funds? The real fox in the hen house has been revealed, now do something about it.
Industry Super Funds divert hundreds of millions $$$$ out of members Super Funds to their mystery box slop bucket ISA.
Why – to support Unions and Labor policies.
Why – because it’s another layer away from the Super Funds themselves and thus away from SIS Legislation what ISA does.
ALL RELATED PARTY ENTITIES, ADMIN PROVIDERS, FUND MANAGERS, ETC, must be forced to fully disclose related party Super Fund cash flows, ownership and pay.
SIS rules must apply to Vertically integrated slop buckets and entities. (Not that ASIC or APRA would do anything against best buddies Industry Super).
LNP for 20 years you have allowed the Unions and Labor to milk the Super system and only now have you finally woken up. Labor have been 100 times smarter than these LNP clowns managing Super for their own and Union benefit. LNP asleep at the wheel.
LNP killing real Advisers whilst the real Fox, Labor & Unions help themselves to the Super hen house.
Industry funds are no worse than ‘advisers’ controlled by product providers but that is not a compliment.
They are just far more effective at lobbying. Watch and learn.
Best interest duty……