Jul 7, 2014

It’s OK, we’ve already got a royal commission into super…

Actually, there is a royal commission underway into superannuation -- except it's part of the government's anti-union witch-hunt.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

While the government is resisting calls for a royal commission into the Commonwealth Bank’s financial planning scandal, there is a royal commission into at least one part of the wealth management industry. This week, Dyson Heydon’s royal commission into trade unions will be hearing evidence about CBus, the construction industry super fund.

Has CBus dudded tens and possibly hundreds of thousands of clients over many years? Have clients’ retirement savings been lost due to the inappropriate and even illegal behaviour of CBus employees? Has CBus misled a Senate committee of inquiry? Not quite: the allegation, instead, is that someone in CBus may have leaked members’ information to the Construction, Forestry, Mining and Energy Union. The retail super funds’ lobby, the Financial Services Council, seized on the allegations to demand greater “independence” for industry fund boards, though that’s unlikely to fix the ongoing problem that industry super funds — overseen by representatives of employer groups and unions and, in the case of CBus, an independent director (John Dawkins) — consistently outperform retail funds.

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2 thoughts on “It’s OK, we’ve already got a royal commission into super…

  1. klewso

    If only the CBA had been run by the cousin of a union official who had once met a Labor PM?

  2. Yclept

    Vern Christie (MD 1981-1987) was a member of the Union. There’s the link – let the Royal Commission commence!

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