Q No. |
Member |
Question |
Hansard page
and Hearing date
or Written Questions |
Response
(Publication date)
|
BT1QW |
Wilson |
The details of the date and location of your annual general meeting for the past five years, and whether fund members were invited to attend.
|
Written |
(PDF86KB)
|
BT2QW |
Wilson |
The details of any fund member briefings where it was possible to ask fund managers, executives or directors questions over the past five years.
|
Written |
(PDF84KB) |
BT3QW |
Wilson |
Details of all ASIC fines and infringement notices incurred over the past five years. |
Written |
(PDF103KB) |
BT4QW |
Wilson |
The name and company of your auditor for the past five years. |
Written |
(PDF94KB) |
BT5QW |
Wilson |
For the past five years the total value in dollars and as a percentage of the total value of a fund:
a. Listed investments.
b. Unlisted investments.
c. Total investments.
|
Written |
(PDF154KB) |
BT6QW |
Wilson |
For the past five years the total value in dollars and as a percentage of the total return for the fund:
a. Listed investments.
b. Unlisted investments.
c. Total investments.
|
Written |
(PDF98KB) |
BT8QW |
Wilson |
Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) wholly owned by the fund or funds under your control, including:
a.The asset name and location.
b. The frequency of the revaluation of the asset.
c. The most recent valuation.
d. A copy of that valuation.
e. The methodology used for its valuation.
f. Whether the valuation was completed internally or externally.
g. The details of any external party involved in the valuation.
|
Written |
(PDF101KB) |
BT9QW |
Wilson |
Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) partly owned by the fund or funds under your control, including:
a. The asset name and location.
b. The frequency of the revaluation of the asset.
c. The most recent valuation.
d. A copy of that valuation.
e. The methodology used for its valuation.
f. Whether the valuation was completed internally or externally.
g. T he details of any external party involved in the valuation.
|
Written |
(PDF243KB) |
BT10QW |
Wilson |
Details of arrangements for the temporary or permanent use for corporate venue hire (including corporate boxes), including additional non-hire costs such as catering, at sporting venues over the past five years.
|
Written |
(PDF79KB) |
BT12QW |
Leigh |
Have you prepared or commissioned any reports focussed on benchmarking the performance of underlying assets to which members are exposed (net of all fees and costs) against relevant asset class returns? |
Written |
(PDF83KB) |
BT13QW |
Leigh |
Could you please indicate how you supervise the indirect costs associated with vertically integrated retail funds, including what the costs are for (brokerage etc) and how you ensure they are not eroding members’ accounts? |
Written |
(PDF72KB) |
BT14QW |
Leigh |
For each of the last five years, please provide the total cost of investment management fees and costs borne directly and indirectly by members. |
Written |
(PDF86KB) |
BT15QW |
Leigh |
Transferring to MySuper products
a) What was the period of time you took to complete the transfer of your members’ accrued default amounts (ADAs) into MySuper products following the commencement of the MySuper regime on 1 January 2014?
b) How did that duration reflect the best interests of your members?
c) Was there anything that prevented you from transferring accounts sooner?
d) Please quantify the fee revenue lost if you had transferred members by 30 June 2014, 2015, 2016 and 2017 respectively.
|
Written |
(PDF88KB) |
BT16QW |
Leigh |
Several case studies in the Royal Commission highlighted that related party contracts in vertically integrated super funds (into the wealth management arms of banks) led to conflicts where the interest of the shareholder came before the super fund members.
a) Please describe your tender process for related party contracts such as custodial services, insurance, brokerage, administration and investment management.
b) How do you determine that these contract arrangements reflect value for money for members?
c) Please describe the potential conflicts of interest with such arrangements and how you manage them?
d) How do you evaluate whether your management of conflicts of interest is working?
e) Have you prepared or commissioned any reports focussed on benchmarking the performance and cost of contracts with related-party service providers, relative to the wider market? If so, please provide these for the period covering the last five years.
|
Written |
(PDF125KB) |
BT17QW |
Wilson |
Over the last five financial years:
a. What is the total budget for all costs associated with the fund?
b. What were the total assets under management?
c. What are the total number of employees?
d. What are the total number of contractors?
e. What are the total number of externally hired contracts, and their value?
|
Written |
Responses to
questions 17 - 66
(30 September 2020)
(PDF548KB)
|
BT18QW |
Wilson |
Over the last five financial years:
a. What is the total number of member accounts?
b. What is the total increase in the number of members as a result of the fund’s default status?
c. What is the total increase in the number of members through voluntary adoption or switching?
d. What was the average member balance?
e. What was the average dollar amount deducted in insurance fees per member, across all fund products in dollar terms and as a share of a member account?
f. What was the total number of inactive accounts? (Please use the APRA definition: no contributions for two years)
|
Written |
|
BT19QW |
Wilson |
Please provide the one, five, and ten year net return after fees, costs, and taxes for the primary default MySuper balanced product.
|
Written |
|
BT20QW |
Wilson |
Over the last five financial years:
a. What was the average dollar amount deducted for administration and asset management fees per member, across all fund products? (please do not include insurance fees)
b. What was the cost (%) of fund administration expenses as a proportion of funds under management?
c. What was the total cost of in-house administration expenses?
d. What was the cost of in-house administration expenses as a proportion of funds under management?
e. What was the total cost of any external administration expenses?
f. What was the cost of any external administration expenses as a proportion of funds under management?
g. What was the total cost of any external administration expenses to Related Parties?
h. What was the cost of any external administration expenses to Related Parties as a proportion of funds under management?
i. How many staff are employed in roles considered part of the administrative cost?
|
Written |
|
BT21QW |
Wilson |
What is the total number of statutory fines over the past five years?
|
Written |
|
BT22QW |
Wilson |
Over the last five financial years:
a. The number of rollover requests that the fund did not pay out to another fund for each year?
b. The average dollar value of a rollover for each year?
c. The value of any clawback accounts and/or funds held that is used to hold funds between financial years?
|
Written |
|
BT23QW |
Wilson |
a. Does the fund maintain a reserve at least partially funded through insurance premiums, rebates from an insurance company (such as profit share arrangements) or tax benefits that have arisen from insurance?
b. The total value of that reserve?
c. The total value of tax rebates received from the ATO on insurance premiums?
|
Written |
|
BT24QW |
Wilson |
The number of trusts or investment vehicles the fund controls in each of the low tax regions, including Andorra, the Bahamas, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, the Channel Islands, the Cook Islands, Hong Kong, the Isle of Man, Mauritius, Lichtenstein, Luxembourg, Monaco, Panama, St Kitts and Nevis?
|
Written |
|
BT25QW |
Wilson |
a. The number of accounts that have been transferred to the ATO as a result of ‘Protecting your Super’ legislation?
b. The value of the money that will be paid to the ATO as a result of the ‘Protecting your Super’ legislation?
c. The number of accounts that has been transferred into an eligible rollover fund in the 2019 financial year?
d. The value of the money that has been transferred into an eligible rollover fund in the 2019 financial year?
|
Written |
|
BT26QW |
Wilson |
Have you ever made a donation and/or subscription fee to the ACTU Member Connect and/or ACTU Superannuation Partnerships program, and if so, to what value over the past five years?
|
Written |
|
BT27QW |
Wilson |
Does the fund pay any external consultants for any advocacy and communication services, and if so can you please name them and the costs incurred over the past five years?
|
Written |
|
BT28QW |
Wilson |
a. How many staff are employed for the purpose of policy research or analysis?
b. How much was spent on engaging external policy and data analysis consultants?
c. How much was spent on membership of industry advocacy organisations that provide policy and data analysis service to member funds?
|
Written |
|
BT29QW |
Wilson |
In the context of building investments:
a. Have you completed assessments of the prevalence of flammable cladding across some properties?
b. Have you completed assessments of the prevalence of flammable cladding across all properties?
c. Have you taken any remediation to reduce your exposure to risk to identify flammable cladding, and if so, what?
d. Have you taken any remediation to reduce your exposure to risk to remove flammable cladding, and if so, what?
e. Do you hold any properties where insurance has been refused or are uninsured due to defective building construction such as cladding?
|
Written |
|
BT30QW |
Wilson |
a. What external parties manage your investments, if any?
b. What are the fee structures per member from external management?
|
Written |
|
BT31QW |
Wilson |
Governance:
a. How many trustee board members did the fund have?
b. What was the total salary of all trustee board members?
c. What was the average salary of all trustee board members?
d. Are there any performance-based assessments that determine trustee board remuneration, and if so what are they?
e. What was the salary of the trustee board chair?
f. What was the average length of service of all trustee board members?
g. What is the length of service of the longest serving trustee board member?
h. Are trustee board members asked whether they have conflicts of interest at each meeting, and if not, why not?
i. What is the conflict of interest policy for trustee board members?
j. Does your fund have a policy on gender diversity and/or balance for listed companies?
k. Does your board have gender balance?
|
Written |
|
BT32QW |
Wilson |
In the context of the ACCC’s legal action and question for competition in monopoly infrastructure entities:
a. What are the implications for infrastructure investment returns if the ACCC is successful in its legal action?
b. Have you analysed your infrastructure investment portfolio to examine the risk of ACCC action to reduce anti-competitive monopoly of oligopoly pricing?
c. If so, can you provide details of the likely impact, and what is the project impact on revenue and income?
|
Written |
|
BT33QW |
Wilson
|
In dollar terms, for each of your superannuation products, can you please provide annual data for the past five financial years on average, for a member with a balance of $6,000, $50,000 and $150,000?
a. Investment fees
b. Administration fees
c. Indirect costs
d. Any other cost to a member which is incurred or foregone by way of a lesser return pre-unit price (but not included in the indirect cost ratio) including any other costs, charges, fees, direct or indirect benefits including any benefit by way of rebate, set-off, commission, in-kind, tax credit/offset retained, interest (or interest rebate) retained by any party involved in the management, custody, review, compliance, administration, servicing, asset consulting, valuation, operation and maintenance, financing, auditing, brokerage, execution, settlement, or otherwise of the assets in the fund, or their underlying assets.
e. An aggregate total of all fees mentioned above.
|
Written |
|
BT34QW |
Wilson
|
As a percentage of the value of the member account, for each of your superannuation products, can you please provide annual data for the past five financial years on average, for a member with a balance of $6,000, $50,000 and $150,000?
a. Investment fees
b. Administration fees
c. Indirect costs
d. Any other cost to a member which is incurred or foregone by way of a lesser return pre-unit price (but not included in the indirect cost ratio) including any other costs, charges, fees, direct or indirect benefits including any benefit by way of rebate, set-off, commission, in-kind, tax credit/offset retained, interest (or interest rebate) retained by any party involved in the management, custody, review, compliance, administration, servicing, asset consulting, valuation, operation and maintenance, financing, auditing, brokerage, execution, settlement, or otherwise of the assets in the fund, or their underlying assets.
e. An aggregate total of all fees mentioned above.
|
Written |
|
BT35QW |
Wilson
|
To the extent that any of the fees and costs listed in the previous two questions are paid to a related entity or associate of the trustee, or any of their respective related entities or associates, please set out the function performed or service provided by that person, and the amount (total quantum) paid to that entity or person at a whole-of-fund level. |
Written |
|
BT36QW |
Wilson |
For the past five years:
a. What was the total cost of all advertising and/or marketing?
b. What was the total cost of all advertising and/or marketing per member?
c. What was the total cost of all advertising per new (FY19) member?
d. What was the total cost of all television advertising and/or marketing?
e. What was the total cost of all radio advertising and/or marketing?
f. What was the total cost of all print advertising and/or marketing?
g. What was the total cost of all online advertising and/or marketing?
h. How many in-house staff are employed in advertising and marketing roles?
i. How much was spent on engaging external advertising and marketing consultants?
j. Do you advertise and/or directly financial contribute to the New Daily?
|
Written |
|
BT37QW |
Wilson |
How much money have you spent on advertising on the following platforms in the past decade:
a. Google?
b. Facebook?
c. Twitter?
d. Instagram?
e. A non-Google search engine?
f. Any social media platform that is not mentioned in (b) – (d)?
|
Written |
|
BT38QW |
Wilson |
Can you provide details if you have purchased the following over the past decade:
a. Google advertisements
b. Google search terms.
|
Written |
|
BT39QW |
Wilson |
a. Do you use Google Ad Words, or any Google provided or supported service to advertise any of your funds or your brand in any way whatsoever?
b. Please list what terms you have used in Google Ad Words in the last five years to generate an impression on particular search queries.
|
Written |
|
BT40QW |
Wilson |
What percentage of the return on investment from your unlisted assets can be attributed to revaluations due to falling interest rates, and capital asset pricing model market yields used as the discount rate in discounted cash flow based valuations?
|
Written |
|
BT41QW |
Wilson |
How will the overall fund performance be affected if:
a. The income return of unlisted assets declines?
b. The fund can no longer purchase unlisted assets onshore?
c. The fund can no longer purchase unlisted assets offshore?
|
Written |
|
BT42QW |
Wilson |
How have you structured the fund to address the writing back of the increased investment capitalised future returns?
|
Written |
|
BT43QW |
Wilson |
What are the projected changes in income in light of the writing back of the increased investment capitalised future returns? |
Written |
|
BT44QW |
Wilson |
Valuation methodologies:
a. Have you compared your valuation methodologies and assumptions for unlisted assets with other superannuation funds, and if so, what are the differences?
b. Are you confident that your valuation methodologies and assumptions for unlisted assets reflect their value to the fund, and how often are they reviewed?
c. How do you compare your valuations to listed investments, including, but not limited to, whether there is a cross check to stock prices for similar assets?
d. Have you ever calculated whether there would be a difference between valuations if unlisted assets were listed?
|
Written |
|
BT45QW |
Wilson |
What is the current annual average return for your unlisted assets? |
Written |
|
BT46QW |
Wilson |
Given the size of your large joint investments, why are they not listed for liquidity, valuation and public disclosure purposes?
|
Written |
|
BT47QW |
Wilson |
a. How many unlisted assets do you hold in the fund?
b. What value share are unlisted assets of the fund’s:
i. total value?
ii. total property value?
|
Written |
|
BT48QW |
Wilson |
Discount rates:
a. For unlisted assets, do you use a consistent discount rate for income across all unlisted assets, or an asset-specific discount rate?
b. What is the discount rate you apply to the income from unlisted assets, and has it changed over the past decade, and if so, when and why?
|
Written |
|
BT49QW |
Wilson |
Of the unlisted assets, how many have outperformed the average return on investments in superannuation over the past five years?
|
Written |
|
BT50QW |
Wilson |
Have you completed any analysis about your capacity to continue to provide returns to fund members at the current, or past rate, into the future based on the valuations of your unlisted assets?
|
Written |
|
BT51QW |
Wilson |
Over the past decade:
a. Have you ever devalued an unlisted asset?
b. Have you ever devalued an unlisted asset by more than $10 million?
c. Have you ever devalued an unlisted asset by more than $50 million?
d. Have you ever devalued an unlisted asset by more than $100 million?
e. Please advise the companies and/or individual valuers that have valued your unlisted assets.
|
Written |
|
BT52QW |
Wilson |
For each year of the past decade:
a. How many superannuation customers do you have?
b. How many financial planners do you have in total numbers, and as a superannuation customer to financial planner ratio?
c. How many financial advisers do you have in total numbers, and as a superannuation customer to financial planner ratio?
|
Written |
|
BT53QW |
Wilson
|
For each year of the past decade:
a. How much is charged for financial planning annually to fund members, and what is the average per superannuation customer?
b. How much is charged for financial planning annually to funds, and what is the average per superannuation customer?
c. How much is charged for financial advice annually to fund members, and what is the average per superannuation customer?
d. How much is charged for financial advice annually to funds, and what is the average per superannuation customer?
|
Written |
|
BT54QW |
Wilson |
For each year of the past decade:
a. What is the cost of general advice annually, and what is the average per superannuation customer?
b. What are the aggregate value of bonuses provided for general advice, and what is the average per adviser?
|
Written |
|
BT55QW |
Wilson |
For each year of the past decade:
a. What is the cost of scaled advice annually, and what is the average per superannuation customer?
b. What are the aggregate value of bonuses provided for scaled advice, and what is the average per adviser?
|
Written |
|
BT56QW |
Wilson |
For each year of the past decade:
a. What is the cost of comprehensive advice annually, and what is the average per superannuation customer?
b. What are the aggregate value of bonuses provided for comprehensive advice, and what is the average per adviser?
|
Written |
|
BT57QW |
Wilson |
For each year of the past decade:
a. What is the cost of intra-fund advice annually, and what is the average per superannuation customer?
b. What are the aggregate value of bonuses provided for intra-fund advice, and what is the average per adviser?
|
Written |
|
BT58QW |
Wilson |
How many employees does the fund have?
|
Written |
|
BT59QW |
Wilson
|
How do you define employee misconduct? |
Written |
|
BT60QW |
Wilson |
Over the past five years:
a. How many employees have been cautioned for misconduct?
b. How many employees have had a penalty (such as, but not limited to, loss of bonus) for misconduct?
c. How many employees have been terminated for misconduct?
d. How many employees have been cautioned for misconduct, as a share of all employees over that timeframe?
e. How many employees have had a penalty (such as, but not limited to, loss of bonus) for misconduct, as a share of all employees over that timeframe?
f. How many employees have been terminated for misconduct, as a share of all employees over that timeframe?
|
Written |
|
BT61QW |
Wilson |
Of the twenty highest remunerated employees over the past decade, please provide the number whose total remuneration in a financial year (including all forms of remuneration, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. |
Written |
|
BT62QW |
Wilson |
Of the twenty highest incentive bonuses paid over the past decade, please provide the number that fall within these brackets. |
Written |
|
BT63QW |
Wilson |
Of the twenty highest performance bonuses paid over the past decade, please provide the number that fall within these brackets. |
Written |
|
BT64QW |
Wilson |
Of the twenty highest severance packages over the past decade, please provide the number whose total package (including all forms of accumulated severance package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets.
|
Written |
|
BT65QW |
Wilson |
Of the twenty highest termination payments over the past decade, please provide the number whose total package (including all forms of accumulated termination package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets.
|
Written |
|
BT66QW |
Wilson |
Of the twenty highest redundancy payments over the past decade, please provide the number whose total package (including all forms of accumulated redundancy package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. |
Written |
|
BT67QW |
Wilson |
On 1 January 2020 what was your percentage share and nominal value of your listed and unlisted assets? |
Written |
Responses to questions 67 - 76
(29 May 2020)
(PDF125KB)
|
BT68QW |
Wilson |
On 1 January 2020 did your fund have liquidity issues resulting from honouring obligations to members? |
Written |
|
BT69QW |
Wilson |
What write down, if any, has been made to the value of unlisted assets? |
Written |
|
BT70QW |
Wilson |
Listed companies holding infrastructure assets have had write downs of around 40 per cent:
a. How does this compare to your write down of unlisted assets?
b. If there is a difference, why is there a difference?
|
Written |
|
BT71QW |
Wilson |
Have you had any liquidity issues in honouring your obligations to members as a result of the:
a. recent decline in the share market?
b. permission by the Federal government to allow members to remove up to $10,000 per financial year if they lose their job?
|
Written |
|
BT72QW |
Wilson |
What has been the current reduction of the value of your fund, and the unlisted and listed components since 1 January 2020? |
Written |
|
BT73QW |
Wilson |
How many members, affected by COVID-19, have requested the early release of their superannuation since 12 March 2020, and to what value? |
Written |
|
BT74QW |
Wilson |
How many members, affected by COVID-19, have had approved the early release of their superannuation since 12 March 2020, and to what value? |
Written |
|
BT75QW |
Wilson |
If some members, affected by COVID-19, have required the early release of their superannuation since 12 March 2020 and not been approved, please provide details of the grounds on which they have not been approved. |
Written |
|
BT76QW |
Wilson |
Liquidity management:
a. What is your fund’s process for complying with APRA’s prudential framework which requires trustees to have a liquidity management plan?
b. How is the plan being reported to the trustee directors?
c. Who is responsible for the day-to-day liquidity management for the fund?
|
Written |
|
BT77QW |
Wilson |
Since 12 March 2020, has your fund provided any liquidity to:
a. REST?
b. Hostplus?
c. any other superannuation fund?
If so, for each fund, can you provide details of the amount, the date and the terms?
|
Written |
(7 July 2020)
(PDF465KB) |
BT78QW |
Wilson |
Since 12 March 2020, has your fund loaned any cash to:
a. REST?
b. Hostplus?
c. any other superannuation fund?
If so, for each fund, can you provide details of the amount, the date and the terms?
|
Written |
(7 July 2020)
(PDF470KB) |
BT79QW
|
Wilson |
Regarding any investments you have with IFM Investors, please provide the following:
a. The capital invested each year for the past five years.
b. The accumulated valuation of investments for the past five years.
c. The dividends received from those investments for the past five years.
|
Written |
Responses to questions 79 - 90
(28 July 2020)
(PDF427KB) |
BT80QW |
Wilson |
Regarding any investments you have with ME Bank, please provide the following:
a. The capital invested each year for the past five years.
b. The accumulated valuation of investments for the past five years.
c. The dividends received from those investments for the past five years. |
Written |
|
BT81QW |
Wilson |
If you are an investor in ME Bank, have you individually (or in collaboration with other funds), ever commissioned reports into its valuation in the past decade?
a. And if so, how many reports and in what year?
b. Were any commissioned to be completed by the UK-based group, LEK?
c. And please provide copies.
|
Written |
|
BT82QW |
Wilson |
According to reports in the Australian Financial Review superannuation fund, Hostplus, redefined the definition of ‘illiquid assets’ (‘Hostplus warned of liquidity “perfect storm”’, Australian Financial Review, 18 May 2020). Therefore, can you please advise:
a. How you define ‘illiquid assets’ within your fund, including details of holdings and timeframes?
b. How you define ‘liquid assets’ within your fund, including details of holdings and timeframes?
c. How long each of these definitions have been used?
d. What prompted any switch to these definitions?
e. What the prior definitions were before any switch? |
Written |
|
BT83QW |
Wilson |
Have you completed a skills audit in the past five years of the following:
a. Your board of directors?
b. Your investment committee?
c. And if not, why not?
d. And if so, presently what gaps are identified? |
Written |
|
BT84QW |
Wilson |
Prior to appointment, have employees fulfilling fiduciary roles had their investment performance track record assessed before fees?
a. And if not, why not?
b. And if not prior to appointment, have they following appointment?
c. And if so, on what timeframe? |
Written |
|
BT85QW |
Wilson |
Please provide data to complete this table for your unlisted asset holdings based on their geographic spread. |
Written |
|
BT86QW |
Wilson |
Please provide a copy of your Constitution. |
Written |
|
BT87QW |
Wilson |
Please provide details, including the event name, organising entity, ticket price and attendee(s) for the past decade of the tickets purchased for events and/or fundraisers for political parties or related entities, individual MPs and individual candidates for political office or the associated fundraising entities of political parties, individual MPs and individual candidates for political office. |
Written |
|
BT88QW |
Wilson |
Do you currently have an art collection?
a. If so, can you advise its current valuation?
b. If so, can you advise where it is stored and/or exhibited? |
Written |
|
BT89QW |
Wilson |
Do you engage proxy advisers?
a. What are the terms of engagement for proxy advisers?
b. To what extent are they empowered to act on behalf of the entity?
c. Does their advice get provided to the board?
d. How often is advice submitted to the board?
e. Is their advice formally adopted by the board?
f. Are their positions publicly stated?
g. How does the board assess these positions concurrent with their duties as trustees and the sole purpose test? |
Written |
|
BT90QW |
Wilson |
Are you currently, or have you previously been, a member or subscriber of the ACTU Members Connect Program?
a. If so, what is the timeframe of your membership?
b. What has been the annual fee year-on-year?
c. How have you assessed its value to your members? |
Written |
|
BT91QW |
Leigh |
How much money do you expect to be withdrawn from your fund as a result of the government’s early access scheme for members affected by COVID-19? |
Written |
Responses to questions 91 - 122
(16 October 2020)
(PDF329KB)
|
BT92QW |
Leigh |
Please provide a list of all investment schemes across your fund(s) that have had their redemptions frozen since January 2008, and for each:
a. What was the total value of funds frozen?
b. How many of your members were impacted by these frozen funds, and how?
c. The date on which the freeze was implemented and lifted.
d. A copy of the clause trustees relied on to enact that freeze.
|
Written |
|
BT93QW |
Leigh |
Are you, or any entities you control, planning to freeze any managed investment schemes associated with your fund or fund platform business? |
Written |
|
BT94QW |
Leigh |
Since 1 January 2020, have you, or any entities you control:
a. Suspended any successor fund transfers?
b. Had any funds involved in impending merger activity frozen by investment managers?
|
Written |
|
BT95QW |
Leigh |
Mortgage trusts
a. Do you, or any entities that you control, have mortgage trusts on your platform?
b. Will you need to freeze redemptions on these due to leverage?
|
Written |
|
BT96QW |
Leigh |
Property trusts and assets
a. Do you, or any entities you control, have listed property trusts on your platform?
b. How have these performed in comparison to direct unlisted property assets owned by your fund between 1 January 2020 and 20 April 2020?
|
Written |
|
BT97QW |
Leigh |
Do you, or any entities you control, have agribusiness schemes on your platform?
If so, what was the nominal value of these investments on:
a. 1 January 2020?
b. 20 April 2020?
|
Written |
|
BT98QW |
Leigh |
Managed investment schemes
a. What policies and governance structures do you, or any entities you control, have in place to determine what managed investment schemes are added to your investment platforms? (Please also provide a copy of these policies.)
b. Do you, or any entities you control, allow financial advice dealer groups to add managed investment schemes to your platform and/or recommended product lists?
|
Written |
|
BT99QW |
Leigh |
APRA supervision of investment governance
a. Please describe APRA’s current supervision of your investment governance.
b. When did APRA last examine your investment governance processes?
c. Has APRA asked you to stress-test particular types of managed investment schemes? If so, what types?
|
Written |
|
BT100QW |
Leigh |
Rent for tenancies during COVID-19
a. Can you please advise what action you, or any entities you control, have taken to defer the payment of rent for tenancies for listed and/or unlisted assets owned by your fund during the COVID-19 pandemic?
b. To what dollar value has that reduced revenue to your fund since 1 February 2020?
|
Written |
|
BT101QW |
Leigh |
Can you please advise what exposure your members have to listed property trusts and the value of those asset holdings on:
a. 1 January 2020?
b. 25 April 2020?
|
Written |
|
BT102QW |
Leigh |
Can you please advise what exposure your members have to listed mortgage trusts and the value of those asset holders on:
a. 1 January 2020?
b. 25 April 2020?
|
Written |
|
BT103QW |
Leigh |
Do you expect that actual or expected hardship redemptions as a result of the COVID-19 pandemic will reduce, delay or otherwise impact shareholder returns? If so, how and to what extent? |
Written |
|
BT104QW |
Leigh |
How many sexual harassment complaints have been lodged against your company in the last five years?
For each complaint, please set out:
a. the jurisdiction
b. how the complaint was resolved, and
c. the remedies ordered or settlement amount.
|
Written |
|
BT105QW |
Leigh |
In the context of understanding the value of your services to Australian superannuation members, can you please advise the remuneration package for your Chief Executive; specifically:
a. base salary
b. annual bonuses
c. the accumulated value of deferred bonuses unpaid
d. the accumulated value of deferred bonuses paid
e. any other annual, bonus or deferred remuneration information or settlements not covered in the previous four points, and
f. reimbursements for expenses.
|
Written |
|
BT106QW |
Leigh |
Please provide copies of your:
a. annual report for the past five years, and
b. company structure.
|
Written |
|
BT107QW |
Leigh |
Please provide details of sponsorship or sponsorship-like arrangements, marketing or marketing-like or in-kind arrangements for the past five years. |
Written |
|
BT108QW |
Leigh |
Has your company ever made a donation (please include donations and ‘other subscriptions’) to any political party either directly or through a third party? |
Written |
|
BT109QW |
Leigh |
Does your company have a relationship with the:
a. Business Council of Australia?
b. Financial Services Council?
c. Australian Financial Markets Association?
d. Institute for Public Affairs?
If so, please provide details of any amounts paid to each group.
|
Written |
|
BT110QW |
Leigh |
Are any commissions paid to employees?
If so, please provide:
a. Details of these commission arrangements.
b. The total amount of commissions paid for each of the last five years.
c. The conflicts of interest policy for managing these commission arrangements.
|
Written |
|
BT111QW |
Leigh |
Does your company/fund pay incentives (commissions, shelf fees, volume incentives) to win investment mandates?
If so, please provide the details.
|
Written
|
|
BT112QW |
Leigh |
In the context of corporate governance, can you please provide for board directors (based or located in Australia or elsewhere) for the past five years:
a. A list of the Board members and their biographies.
b. De-identified total remuneration for each Board director.
c. De-identified disaggregated remuneration for each Board Director, including:
i. Base salary.
ii. Annual bonuses.
iii. The accumulated value of deferred bonuses unpaid.
iv. The accumulated value of deferred bonuses paid.
v. Any other annual, bonus or deferred remuneration information not covered in the previous four points.
vi. Reimbursements for expenses.
|
Written |
|
BT113QW |
Leigh |
Quantify the largest severance package, in dollar figures, that has ever been paid to an employee. |
Written |
|
BT114QW |
Leigh |
Self-managed super funds
a. Can you please advise whether you manage funds for SMSFs?
b. Have you allowed individuals and/or SMSFs to co-invest alongside your investments?
c. Do you allow individuals and/or SMSFs to co-invest alongside your investments?
|
Written |
|
BT115QW |
Leigh |
Please advise whether you manage funds for:
a. family trusts?
b. trusts?
c. registered organisations, and if so which registered organisations?
|
Written |
|
BT116QW |
Leigh |
Managing money for related parties
a. Do you manage money for any related parties, whether superannuation funds or otherwise?
b. If so, which organisations or entities?
c. In relation to these organisations or entities:
i. Are you aware whether those related parties have assessed the value of these arrangements, relative to best-practice arms-length arrangements available elsewhere, in terms of generating returns for members?
ii. Please provide your conflicts of interest policy for managing related party arrangements.
iii. Please provide your risk management approach for related party arrangements including line 1, line 2 and line 3 roles.
|
Written |
|
BT117QW |
Leigh |
Please provide the number of clients by funds under management on behalf of each client, in the following ranges:
• <$20 million
• $20 million - $50 million
• $50 million - $100 million
• $100 million - $1 billion
• >$1 billion.
|
Written |
|
BT118QW |
Leigh |
Please list the individual private clients under management (including family trusts) for the following ranges:
• <$20 million
• $20 million - $50 million
• $50 million - $100 million
• $100 million - $1 billion
• >$1 billion.
|
Written |
|
BT119QW |
Leigh |
Do you support remuneration disclosure laws in Corporations Law? |
Written |
|
BT120QW |
Leigh |
If you are an investor in any banking institution, have you individually as a fund (or in collaboration with other funds), ever commissioned reports into its valuation in the past decade?
a. If so, how many reports and in what year?
b. Please provide copies.
|
Written |
|
BT121QW |
Leigh |
Please provide details of the process you apply for assessing voting at annual general meetings of listed companies, including:
a. The committee appointed to make decisions.
b. The committee membership.
c. Whether that committee reports to the board.
d. What principles guide decision making.
e. Whether there is a report to the board about decisions made.
f. Whether decisions are made based on the objectives of improving capital value, or social or environmental priorities.
|
Written |
|
BT122QW |
Leigh |
In the context of your board:
a. What is the process for board appointments?
b. Is there a skills matrix completed before board appointments?
c. Are any of your shareholders entitled to appoint directors?
d. How, if at all, are shareholders represented to the board?
e. How, if at all, are shareholders represented within the company?
|
Written |
|
BT123QW |
Wilson |
Please provide the titles of all externally commissioned reports over the past five years that have reviewed any of the following:
a. Performance of funds.
b. Investment strategies for funds.
c. Conflicts of interest for funds.
|
Written |
Responses to questions 123 - 132
(16 October 2020)
(PDF146KB)
|
BT124QW |
Wilson |
For each fund where more than 30 per cent of capital is managed by another entity, please complete the below table including:
a. The name of the fund.
b. The allocation of capital as a percentage of the total capital held by the fund.
c. The allocation of capital of the total capital held by the fund.
d. The entity managing the capital.
e. Whether you are a shareholder in that entity.
|
Written |
|
BT125QW |
Wilson |
If you do have capital managed by another entity that you are also a shareholder in, please identify how you manage conflicts of interest. |
Written |
|
BT126QW |
Wilson |
Please provide details of the following reduction to remuneration packages since 11 March 2020:
a. Board members.
b. The chief executive.
c. Executive management.
|
Written |
|
BT127QW |
Bandt |
Is the fund considering divestment from pure play fossil fuel producers in order to mitigate climate-related financial risks and to increase the cost of capital for those producers?
If not, how has the fund arrived at the conclusion that this approach would not be in members' best interests?
|
Written |
|
BT128QW |
Wilson |
Since 1 January 2020, for each fund, please outline:
a. The date and value at the highest valuation of the fund?
b. The date and value at the lowest valuation of the fund?
c. The number of business days between the highest and lowest valuation for the fund?
d. The nominal value between the highest and lowest valuation for the fund?
e. The percentage value between the highest and lowest valuation for the fund?
f. The number of business days between the date of the ASX’s lowest valuation, and the lowest day for the valuation of the fund?
g. The number of business days between the date of the ASX’s lowest valuation, and the lowest valuation of unlisted assets in the fund?
h. What volume of switching of investments occurred between funds between the highest and lowest valuations?
i. What volume of switching between funds occurred in that time by trustees of the fund that are also members of the fund, between the highest and lowest valuations?
j. What volume of switching between funds occurred in that time by executives of the fund that are also members of the fund, between the highest and lowest valuations?
k. What volume of switching between funds occurred in that time by other employees of the fund that are also members of the fund, between the highest and lowest valuations?
l. What integrity measures were taken to prohibit trustees, executives and employees switching between funds from taking advantage of arbitrage of any gap between the lowest valuation date of the ASX and any revaluation of the fund?
|
Written |
|
BT129QW |
Wilson |
On financial advisers providing non-intrafund advice (i.e. comprehensive advice - beyond the scope of intrafund advice) within the fund over the past five financial years:
a. How many do you employ (or are you paying for through outsourced arrangements)?
b. What is the revenue generated from these non-intrafund advisers?
c. How many financial advisers within the fund also provide intrafund advice?
d. If you have non-intrafund financial advisers within the fund also providing intrafund advice, how is their remuneration determined from different sources?
e. Is there any cross-subsidisation for non-intrafund financial advisers within the fund from activities funded through intrafund advice?
f. Is there any cross-subsidisation for financial advisers from intrafund advice to non-intrafund financial advisers within the fund?
g. What is the total budgeted cost and actuals for financial advisers?
h. What is the remuneration level/range for the financial advisers employed to provide non-intrafund advice to your members?
i. What is the aggregated cost of their remuneration?
ii. What is the aggregated cost for their employment?
iii. What is the aggregated cost for their on-costs, including but not limited to, superannuation, leave, training support and office space?
iv. What is the aggregated cost for marketing their services?
v. What is the aggregated cost for administrative support services?
vi. What is the aggregated cost for professional insurance and indemnity?
vii. What is the aggregated cost for compliance oversight?
viii. What is the aggregated cost for legal oversight?
ix. What is the aggregated cost for other regulatory oversight?
x. What is the aggregated cost for the unit, including overheads, that provides financial advice within the fund?
|
Written |
|
BT130QW |
Wilson |
On financial advisers providing intrafund advice (i.e. strictly limited to advice on your super fund for the member only - not spouse) within your fund over the last five financial years:
a. How many do you employ (or are you paying for through outsourced arrangements)?
b. What is the remuneration level/range for the financial advisers employed to provide intrafund advice to your members?
i. What is the aggregated cost of their remuneration?
ii. What is the aggregated cost for their employment?
iii. What is the aggregated cost for their on-costs, including but not limited to, superannuation, leave, training support and office space?
iv. What is the aggregated cost for marketing their services?
v. What is the aggregated cost for administrative support services?
vi. What is the aggregated cost for professional insurance and indemnity?
vii. What is the aggregated cost for compliance oversight?
viii. What is the aggregated cost for legal oversight?
ix. What is the aggregated cost for other regulatory oversight?
x. What is the aggregated cost for the unit, including overheads, that provides intrafund advice?
c. What is the revenue that intrafund advisers have generated?
d. How many financial advisers providing intrafund advice also provide it within the fund?
e. If you have financial advisers providing intrafund advice also providing it within the fund, how is their remuneration determined from different sources?
f. Is there any cross-subsidisation for financial advisers providing intrafund advice from revenue funded through activities within the fund?
g. What is the total budgeted cost and actuals for the intrafund advice unit?
h. What is the revenue generated from these financial advisers?
i. Within your fund, is there any cross-subsidisation for intrafund advice services?
|
Written |
|
BT131QW |
Wilson |
Do you allow members to use their funds to pay for:
a. Financial advice?
b. Internal financial advisers?
c. External financial advisers?
|
Written |
|
BT132QW |
Wilson |
Do you allow external financial advisers access to online facilities to charge for external financial advisers consented by members using their funds? |
Written |
|
BT133QW |
Wilson |
Please advise the total remuneration package of your:
a. company secretary, and
b. Chief Executive Officer, including:
i. total remuneration
ii. base salary
iii. annual bonuses
iv. deferred bonuses
v. equity or other options
vi. additional compensation not covered in the above.
|
Written |
Responses to questions 133 - 152
(6 November 2020)
(PDF306KB)
|
BT134QW |
Wilson |
For each year of the past decade, please advise the:
a. annual remuneration of the average worker who contributes to your fund
b. average annual superannuation contribution from an employee to your fund
c. multiple your CEO is remunerated compared to the annual remuneration of the average worker who contributes to your fund.
|
Written |
|
BT135QW |
Wilson |
In the context of marketing and advertising campaigns:
a. How many is your fund currently running individually, or in collaboration with others?
b. How many have run, or are currently running since the beginning of calendar year 2020?
c. What is the actual cost for each campaign (including development, production, broadcasting, and distribution) to 30 June 2020?
d. What is the actual cost for each campaign (including development, production, broadcasting, and distribution) budgeted?
e. What is the budgeted cost for each campaign (including development, production, broadcasting, and distribution) from 1 July 2020 – 31 December 2020?
f. What is the budgeted cost for any existing or proposed campaigns (including development, production, broadcasting, and distribution) for the period 1 January 2021 – 30 June 2021?
g. What is the budgeted cost for any existing or proposed campaigns (including development, production, broadcasting, and distribution) for the period 1 July 2021 – 31 December 2021?
|
Written |
|
BT136QW |
Wilson |
For each of the following categories, please provide the percentages of employees that are women, men, or who identify otherwise:
a. all employees
b. non-executive employees
c. executive employees
d. senior executive employees.
|
Written |
|
BT137QW |
Wilson |
Do you have a target for the employment of:
a. women as a share of:
i. all employees?
ii. executive employees?
iii. senior executive employees?
b. people who are gender non-binary as a share of:
i. all employees?
ii. executive employees?
iii. senior executive employees?
|
Written |
|
BT138QW |
Wilson |
Since the introduction of Superstream, which has standardised the transfer of funds, has there been:
a. A reduction in the cost to the fund for transferring funds, and if so, by how much?
b. A reduction in the fees charged to members reflecting any saving, and if so, by how much?
|
Written |
|
BT139QW |
Wilson |
Greenhouse gas emissions
a. Does your fund have an internal target for your own greenhouse gas emissions footprint by:
i. 2030?
ii. 2035?
iii. 2040?
iv. 2045?
v. 2050?
b. Does your fund have a target for reducing greenhouse gas emissions from investments by:
i. 2030?
ii. 2035?
iii. 2040?
iv. 2045?
v. 2050?
c. Does your fund intend to divest from investments if they do not reach their greenhouse gas emissions reduction targets by:
i. 2030?
ii. 2035?
iii. 2040?
iv. 2045?
v. 2050?
|
Written |
|
BT140QW |
Wilson |
The New Daily
a. Have you ever completed a cost benefit analysis of The New Daily to your fund?
i. If so, when did you complete this cost benefit analysis?
ii. Please provide a copy of the cost benefit analysis.
b. Have you ever completed a cost benefit analysis of The New Daily to your members?
i. If so, when did you complete your cost benefit analysis of the New Daily to your members?
ii. Please provide a copy of the cost benefit analysis.
|
Written |
|
BT141QW |
Wilson |
Financial advisers remuneration
a. Are your financial advisers paid:
i. a base salary?
ii. non-salaried remuneration, including bonuses?
b. Are your financial advisers, who are only remunerated with a base salary, eligible to provide:
i. personal advice?
ii. general advice?
|
Written |
|
BT142QW |
Wilson |
Have any technology innovations within the fund reduced the cost of operating the fund over the past decade?
If so, please outline:
a. the technological innovations
b. the cost saving
c. the cost saving passed through to fees charged to members.
|
Written |
|
BT143QW |
Wilson |
Valuations
a. What data is provided to valuation teams to assess the value of unlisted assets?
b. When the fund provides data to valuation teams to assess the value of unlisted assets, does this include internal modelling of asset valuations?
c. What assumptions are provided to valuation teams when assessing the value of unlisted assets?
d. When valuation teams assess the value of unlisted assets, do they solely take account of past performance?
e. When valuation teams assess the value of unlisted assets, what weighting do they take on the projected value of the market for such unlisted assets to inform their valuations?
f. For the past decade can you please complete the below table for each unlisted asset valued under your valuation policy.
|
Written |
|
BT144QW |
Wilson |
In the Financial Services Royal Commission documentation an ‘Audit and Risk Management Committee’ paper was compiled for CBUS (‘Review of payments made to sponsoring organisations – Exhibit 5.368).
Please advise how many times, over the last decade, such a paper, or equivalent, has been prepared for:
a. your Board?
b. a Board subcommittee?
c. executive management?
|
Written |
|
BT145QW |
Wilson |
Over the past decade, how many non-disclosure agreements have you agreed to in relation to:
a. human resources issues?
b. sexual harassment issues?
|
Written |
|
BT146QW |
Wilson |
Do you use an internal clearing house to receive the superannuation payments from employers, or their payroll representatives, before they are allocated to an individual member’s account and/or fund?
If so:
a. What is the name of the clearing house?
b. Why do you use a clearing house?
c. How much does it cost annually to use the clearing house?
d. How much does it cost annually to each member to use the clearing house?
e. What happens to interest accrued from funds held in the clearing house?
f. What happens to non-interest income and/or capital gains accrued from funds held in the clearing house?
|
Written |
|
BT147QW |
Wilson |
Do you use an external clearing house to receive the superannuation payments from employers, or their payroll representatives, before they are allocated to an individual member’s account and/or fund?
If so:
a. What is the name of the clearing house?
b. Who owns the clearing house?
c. Why do you use an external clearing house?
d. How much does it cost annually to use the external clearing house?
e. How much does it cost annually to each member to use the external clearing house?
f. What happens to non-interest income and/or capital gains accrued from funds held in the external clearing house?
|
Written |
|
BT148QW |
Wilson |
If you use an internal clearing house please outline when money is received into the clearing house:
a. On average, how long does it stay in the clearing house before it:
i. is allocated to a member’s account and/or fund?
ii. is allocated to purchase units for a member’s account and/or fund?
iii. appears in a member’s account and/or fund statement and/or online record?
b. What is the longest time that it has stayed in the clearing house before it:
i. is allocated to a member’s account and/or fund?
ii. is allocated to purchase units for a member’s account and/or fund?
iii. appears in a member’s account and/or fund statement and/or online record?
c. What is the shortest time that it has stayed in the clearing house before it:
i. is allocated to a member’s account and/or fund?
ii. is allocated to purchase units for a member’s account and/or fund?
iii. appears in a member’s account and/or fund statement and/or online record?
d. For interest accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:
i. the individual member’s account and/or fund?
ii. a different account and/or fund? If so, what is its name?
e. For non-interest income and/or capital gains accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:
i. the individual member’s account and/or fund?
ii. a different account and/or fund? If so, what is its name?
|
Written |
|
BT149QW |
Wilson |
If you use an external clearing house please outline when money is received into the clearing house:
a. On average, how long does it stay in the clearing house before it:
i. is allocated to a member’s account and/or fund?
ii. is allocated to purchase units for a member’s account and/or fund?
iii. appears in a member’s account and/or fund statement and/or online record?
b. What is the longest time that it has stayed in the clearing house before it:
i. is allocated to a member’s account and/or fund?
ii. is allocated to purchase units for a member’s account and/or fund?
iii. appears in a member’s account and/or fund statement and/or online record?
c. What is the shortest time that it has stayed in the clearing house before it:
i. is allocated to a member’s account and/or fund?
ii. is allocated to purchase units for a member’s account and/or fund?
iii. appears in a member’s account and/or fund statement and/or online record?
d. For interest accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:
i. the individual member’s account and/or fund?
ii. a different account and/or fund? If so, what is its name?
e. For non-interest income and/or capital gains accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:
i. the individual member’s account and/or fund?
ii. a different account and/or fund? If so, what is its name?
|
Written |
|
BT150QW |
Wilson |
During the first half of 2020 there were significant market movements because of the economic response to the COVID-19 pandemic. Please complete the following table outlining the total payouts and losses in foreign exchange hedging. |
Written |
|
BT151QW |
Wilson |
Assuming a young Australian whose birthday was 1 July 1989, got their first job on 1 July 2005, opened a default superannuation account on 1 July 2005, made the average contribution of a person in that age bracket, using the default product offer made at that time and made no additional contributions, received the average growth, paid all fees, insurances and deductibles, please complete the following table. |
Written |
|
BT152QW |
Wilson |
In reference to the original publication of the article “CEOs push Andrews to reopen faster” in the Australian Financial Review on 20 October 2020 (see attachment) which states:
Meanwhile, restaurateur Chris Lucas, pub owner and former AFL player Paul Dimattina and CSL chairman Brian McNamee all spoke of repercussions from elements of the labour movement for criticising the state government over the failures which led to the crisis and the subsequent slow pace of reopening the economy. Union-aligned industry superannuation fund managers have pressured Dr McNamee to stop his outspoken criticisms of the state government lockdown, even though he has repeatedly said he is speaking in a personal capacity and not for the company.
In the context of confronting, bullying or intimidatory workplace cultures, please advise:
(a) has the Chair of your fund been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name of the person who made contact and the nature of any communications.
(b) have board members of your fund been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name(s) of the person(s) who made contact and the nature of any communications.
(c) has the CEO of your fund been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name of the person who made contact and the nature of any communications.
(d) have senior executives of your fund been in contact through any medium with Dr McNamee or his office since 5 August, and if so please advise the name(s) of the person(s) who made contact and the nature of any communications
|
Written |
|
BT153QON |
Wilson |
… I asked a question about non-disclosure agreements, and your response has not actually provided the information and has said, 'We're not going to be doing them into the future'. The question I have and I'd like an answer to is: how many non-disclosure agreements have there been in your section of the business—I'm quite happy with that—in relation to human resource issues and sexual harassment issues over the past decade and not going forward? Are you happy to provide that to the committee on notice? |
Hansard p. 14
6 November 2020
|
(8 February 2021)
(PDF109KB) |
BT154QON |
Leigh |
Ms Howes: It depends on the size of the migration. We did another tranche in August, which was a much simpler tranche, and the freeze period was much shorter. So it depends on the size and scale. It was a little longer than we had expected because of the market instability, which we weren't expecting when we planned that. But certainly these things are planned ahead of time, and members are informed. It is unfortunate that there was a disruption, but the context for this is that 97 per cent of members that we migrated are better off. They are in a new digital product and they have access to their super when they want on the Panorama mobile app. So it is a much-improved customer experience. We understand that there is some unfortunate disruption getting customers there, but the end result is a much better member outcome for them.
Dr LEIGH: How many members did you lose as a result of that? How many members chose to leave BT, being disgruntled at being locked out of their accounts?
|
Hansard p. 17
6 November 2020
|
Responses to questions 154 - 160
(11 January 2021)
(PDF136KB)
|
BT155QON |
Simmonds |
Ms Howes: I should clarify that we don't have default status under any awards; however, we do have a corporate superannuation business whereby some employers choose us for their corporate plans.
Mr SIMMONDS: How many of those kinds of relationships do you have in place?
Ms Howes: We have around 30,000 employers. I'd have to get the exact number for you. I can take that on notice.
|
Hansard p. 19
6 November 2020
|
|
BT156QON |
Simmonds |
Mr SIMMONDS: That would be great; thank you. Are you able to provide the committee with a little bit of understanding about who are the biggest of those employers?
Ms Howes: Yes. We range from large employers. Our largest client is Westpac; we run the Westpac staff superannuation fund. There are other large corporates as well, and we operate all the way through to some small SME-type businesses of four or five employees. We can certainly provide that information on notice.
|
Hansard p. 19
6 November 2020
|
|
BT157QON |
Simmonds |
How many people through the COVID process currently are accessing the vulnerable program that you just spoke about?
|
Hansard p. 20
6 November 2020
|
|
BT158QON |
Mulino |
Maybe this is something to be taken on notice. It's not clear to me how you are getting these higher returns early on. I would appreciate a bit more clarity on justifying this claim that, again, in this sea of red—I know you're saying that you're expecting things will look different in the next batch of returns. I'd appreciate a bit more clarity around disentangling this life cycle approach versus, say, comparing that to somebody who has a fixed asset allocation across their life. In your case, I'd appreciate clarity around how it is that your past returns have looked better than they do, or are better than they appear.
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Hansard p. 21
6 November 2020
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BT159QON |
Mulino |
You are for profit. To the extent that there are profits, do any dividends get returned to parent entities on the performance of your fund?
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Hansard p. 21
6 November 2020
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BT160QON |
Mulino |
I would appreciate you indicating what public declarations have been made of any flows to other entities such as your parent entity and I guess also the extent to which certain flows may not be disclosed publicly if they're commercial in confidence.
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Hansard p. 22
6 November 2020
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BT162QW |
Leigh |
a. When was the last time you provided information to APRA or ASIC about how the level of profit margin built into your fee structure or the fee structure of your related entities is in the best financial interests of your members?
b. Has BT ever sought legal advice on how its fee structure and related party transactions comply with:
i. The requirement for trustees to act in members’ best interest (including financial interest)?
ii. The sole purpose test?
iii. If so, please provide this advice.
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Written |
Responses to questions 162 - 170
(3 March 2021)
(PDF157KB)
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BT163QW |
Leigh |
Please provide any information sought by APRA or ASIC over the past 5 years, in relation to BT’s:
a. Marketing expenditure
b. Membership of industry associations or peak bodies (and expenditure on)
c. Related party transactions.
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Written |
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BT164QW |
Leigh |
In response to BT16QW(b) BT stated:
The Board may require the appointment of independent advisers/consultants as part of the selection and appointment process to benchmark or test the terms on which a related party is appointed.
a. How many times for each of the years 2015-2020 has the board sought this type of advice? Please provide a copy of any advice provided. If you are claiming commercial sensitivity, please then provide a list of the titles of each of the reviews and the external consultant that undertook them.
b. Have copies of each of these advisory reports been provided to APRA?
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Written |
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BT165QW |
Leigh |
In response to BT16QW(c) BT said:
An independent review of the operation and effectiveness of the Trustees’ Conflicts of Interest Framework is conducted on a triennial basis with the results reported to the Board Audit Risk and Compliance Committee, together with management’s response to any recommendations or findings.
a. When was the most recent review completed?
b. Please provide a copy of the review to the committee.
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Written |
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BT166QW |
Leigh |
In response to BT16QW(e) BT claimed commercial confidentiality, but referred to two recent material programs connected to related parties. One was a benchmarking review of its engagement with two related entities called Review of Administration and Custodial Services undertaken in 2019. BT stated:
o Overall, the external consultant concluded the services provided by ACML and BTPS are mostly in line with the industry standard and identified areas of improvement that could be addressed through services/contract negotiations with the service providers;
o Following review and due consideration by the Trustee Board, management commenced the process for undertaking renewed services/contract negotiations with the service providers, including consideration of the areas for improvement identified in the review process.
a. Who was the external independent third party that undertook the review?
b. What were the ‘identified areas of improvement that could be addressed’?
c. What were the material changes to the service agreement or contract following re-engagement of the suppliers by the Trustees?
d. Were members at a financial loss as a result of this contract? If so, by how much?
e. What information has been sought by or provided to APRA or ASIC on this?
f. Does BT still use these related entities to deliver the same services? If so, has BT engaged a separate independent provider to ensure the problems identified have been addressed?
g. Has or will this be reported to APRA?
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Written |
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BT167QW |
Leigh |
In response to BT35QW BT disclosed $361 million in payments to related parties.
a. Please outline how these expenses to members are reported to APRA.
b. Please outline how these expenses are disclosed in BT’s annual reports (noting the annual reports for BT funds say: The full retirement wraps audited financial statements and auditor’s report are available on request by contacting 132 135) and/or the annual reports of BT’s related entities.
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Written |
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BT168QW |
Leigh |
During the 6 November hearing BT representatives referenced the Westpac financial results. According to Westpac’s annual results 2020 BT turned a profit of $111 million last financial year (FY20), and $285 million in FY19.
a. How much of this profit was due to:
i. Related entities servicing BT?
ii. Margin built into BT administration fees?
iii. Margin built into other fees charged to members?
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Written |
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BT169QW |
Leigh |
During the 6 November hearing, in response to the Deputy Chair’s question on BT’s main source for obtaining new customers, BT representatives replied ‘We have primarily digital ways of contacting our members for marketing. We are present on apps across the banking websites for Westpac and St George brands.’
a. What is the cost to BT of being present on apps across the banking websites for Westpac and St George brands? Is that below market rate?
b. Aside from apps across Westpac and St George’s banking websites, where else does BT’s digital marketing appear?
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Written |
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BT170QW |
Leigh |
a. Please list BT’s member services that are managed by Westpac (ie online interface for BT Super for Life accounts).
b. For each of the last three financial years, what are the total annual fees BT pays Westpac for providing these services?
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Written |
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BT186QW
|
Wilson |
Have you ever made payments to the ACTU Financial Adviser Network?
If so:
a. To what value for each of the past five years?
b. Why do you pay this fee, and what do you get in return for doing so?
c. Have you assessed the value of this service to your members?
d. If you have assessed the value of this service, how was it assessed?
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Written |
(12 August 2021)
(PDF109KB) |
BT187QW
|
Wilson
|
Please provide as separated data, what the base salary and bonuses were, or are set to be, paid in the 2019/2020 and 2020/21 financial year for your:
a. Chief Executive Officer or equivalent?
b. Chief Investment Officer or equivalent?
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Written
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(12 August 2021)
(PDF112KB)
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BT188QW
|
Wilson
|
Do you support superannuation funds delisting public companies?
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Written
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(12 August 2021)
(PDF93KB)
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BT189QW
|
Wilson
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Property investments
a. Do you have any current investments in the National Housing Finance and Investment Corporation? If so, what is the size of your investments?
b. Please provide information on the rental income for any residential property investments held for each year for the last five financial years.
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Written
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(12 August 2021)
(PDF115KB)
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BT190QW
|
Wilson
|
Subscriptions to The New Daily
a. Has your fund ever considered subscribing your members to The New Daily through an opt-out model? If so:
i. Was this proposed initially internally, or externally?
ii. Who proposed it?
iii. Who approved it?
iv. What was the approval process?
v. What legal advice was sought?
vi. On what date did it proceed, or is it proposed to proceed?
b. Have the following groups ever enquired or requested your fund to subscribe your members to The New Daily:
i. Industry Super Holdings?
ii. The New Daily?
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Written
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(12 August 2021)
(PDF148KB)
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BT191QW
|
Wilson
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What arrangements, including donations, commissions, marketing expenditure or partnerships, do you have that lead to payments to research organisations or ‘think tanks’?
Please provide:
a. Names of the think tanks.
b. Payments made over the last five years.
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Written
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(12 August 2021)
(PDF109KB)
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