Should the super fund lose a court fight over alleged lawbreaking, the fine and legal costs will come from members’ fees rather than its trustees.
AustralianSuper and multiple other industry funds sought court approval to establish multimillion-dollar penalty war chests with which to pay fines out of members’ money last year after new laws designed to prevent funds from doing just that came into force.
An AustralianSuper spokesman confirmed the fund planned to pay any fine, should it lose the ASIC case, out of its Trustee Risk Reserve, which is capped at 0.015 per cent of the net assets of the fund.He said the reserve was “funded by the fees charged”, without further detail. But AustralianSuper’s submission to a consultation by the prudential regulator last year revealed that it comes from administration fees.
But while AustralianSuper members may be footing the bill for this case should the regulator win, Mr O’Halloran said those invested in superannuation more generally would benefit from that cost if the case stopped wrongdoing. The ACTU did not respond to questions on whether they believed it was fair that members funded any legal penalties or costs despite their ownership of AustralianSuper, while Ai Group deflected the query back to the super fund.
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