BUSSQ abandons appeal, concedes to licence conditions

BUSSQ has pulled the plug on its Federal Court appeal for a judicial review of APRA's additional licence conditions, caving to the regulator's edict.

At the same time, APRA has tweaked the conditions it slapped on BUSSQ last August, which force the fund to hire an independent party to probe its fit and proper processes and expenditure management practices.

The regulator adjusted compliance timeframes to clarify "the operation of the conditions" and to ensure the fund begins its required work "as soon as possible."

BUSSQ was given an opportunity to review and respond before the changes were finalised.

APRA said the conditions were about safeguarding the interests of members, addressing its prudential concerns "effectively and expeditiously," and ensuring transparency in BUSSQ's response to those concerns.

BUSSQ took APRA to the Federal Court last August, arguing the additional conditions were unnecessary and potentially impractical. The fund claimed APRA had already scrutinised issues flagged in the conditions without any adverse findings.

BUSSQ also objected to the requirement for an independent review, arguing APRA, not an external consultant, should conduct a review if it felt the need to dredge up these issues, rather than rely on a single person's view.

Following this, APRA agreed to put the conditions on ice until BUSSQ had its day in court.

Justice Derrington threw out BUSSQ's case last month and ordered the fund to cover APRA's costs, however, BUSSQ doubled down, lodging an appeal to challenge his ruling.

Separately, as previously reported by Financial Standard, APRA is proposing changes to superannuation trustees, insurers, and bank board's governance requirements.

The regulator wants to ratchet up minimum standards for the fitness and propriety of responsible persons, requiring "significant financial institutions" to engage with it on succession planning and potential appointments.