Cbus Super agrees with APRA to revamp risk management oversight
11 February 2025
MEDIA RELEASE
Cbus Super has agreed to a new comprehensive work program with the Australian Prudential Regulation Authority (APRA) as part of an enforceable undertaking (EU) to address risk management practices and oversight of key fund services.
The work program builds on progress Cbus has made in recent years to improve its operational risk management following changes to senior management to enhance capabilities.
The work program will further uplift Cbus’s operational risk management and oversight of insurance and outsourcing arrangements.
Cbus notes APRA’s intention to review historic strategic expenditures including partnership payments to unions and employer groups. The issues raised by APRA continue to be addressed as part of a Rectification Plan, published today in response to the Deloitte review which will assist us demonstrate how partnership arrangements will be undertaken in the best financial interests of members.
Cbus acknowledges the importance of the work required under the EU and will comply with it. Cbus remains committed to continually improving its governance practices, policies and procedures.
Cbus has a strong track record of acting in members’ best financial interests over its 40-year history. The Fund quickly acted on the recommendations of the Samuel Review – which was first published in 2015 and the Fund is stronger for it, which along with other changes, helped us deliver top five returns for members over the last decade.
Under the EU, Cbus will prepare and implement an extensive integrated plan to enhance its governance frameworks and practices for the benefit of members.
Cbus Chief Executive Kristian Fok said the Fund and its board are united in their ongoing commitment to uplift practices to ensure members receive the best possible services.
“Our priority is to ensure Cbus meets the highest standards that are rightfully expected of us by our members as one of Australia’s leading superannuation funds,” he said.
"We take our responsibilities to our members very seriously and are committed to ensuring that we operate to the highest standards of governance and compliance to provide the best retirement outcomes for our members."
“While we have made progress in some areas there is more work to be done, and it must be done at pace,” he said.
This work builds on the dedicated programs underway for the implementation of the Financial Accountability Regime and new CPS 230 Operational Risk Management standard soon to come into effect.
Cbus is focused on listening to members, understanding their needs and generating strong, long-term returns to help them achieve the retirement they deserve.
Cbus is one of the top five best performing funds for the past ten years*, delivering 10.77% for 2024† and lifting members’ assets to more than $100 billion‡.
The Cbus APRA Enforceable Undertaking is available here.
The Rectification Plan is available here.
Media enquiries: media@cbussuper.com.au or +61 3 9100 4930
*Taken from the SuperRatings FCRS SR50 Balanced (60-76) Index (December 2024). The default Growth (MySuper) investment option obtained a top 5 performance ranking over 10 years and 20 years for the period ending 31 December 2024. SuperRatings is a rating agency that collects information from super funds to enable performance comparisons - visit www.superratings.com.au for details of its rating criteria. Past performance is not a reliable indicator of future performance.
†Investment performance for the default Growth (MySuper) investment option for the period 1 January to 31 December 2024. Investment performance is based on returns minus investment fees, taxes, and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs that are deducted directly from members’ accounts. Past performance is not a reliable indicator of future performance.
‡As at 27 January 2025.
Insurance is issued under a group policy with our insurer, TAL Life Limited ABN 70 050 109 450 AFSL 237848.
Cbus is the leading Industry Super Fund representing those that help build, maintain and shape Australia. As one of Australia’s largest and fastest growing super funds, we provide superannuation and income stream accounts to more than 920,000 members (as at 30 June 2024) and we manage $100 billion of our members’ money (as at 27 January 2025). Our members include workers and retirees, their families and employers. As of April 2022, Cbus merged with Media Super and offers Media Super products. In May 2023 Cbus Super successfully completed its merger with EISS Super, establishing the Fund as the leading fund for energy and electrical workers in Australia.
This information is about Cbus Super. It doesn’t account for your specific needs. Please consider your financial position, objectives and requirements before making financial decisions. Read the relevant Product Disclosure Statement (PDS) and Target Market Determination to decide if Cbus Super is right for you. Call 1300 361 784 or visit cbussuper.com.au
Issued 11 February 2025, United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as Trustee for Construction and Building Unions Superannuation Fund (Cbus and/or Cbus Super) ABN 75 493 363 262.