Summary of Conflicts Management Policy
This page contains a summary of the Conflicts Management Policy of CBH Superannuation Holdings Pty Ltd. The Policy sets out how the Trustee identifies and manages actual, potential and perceived conflicts and forms part of the Trustee's Conflict Management Framework. You can access the full Conflicts Management Policy by clicking here.
The Trustee has a Conflicts Management Policy which applies to all responsible persons of CBH Superannuation Holdings Pty Ltd. This includes:
· the Directors (including independent Directors and any alternate or acting Directors) of CBH Superannuation Holdings Pty Ltd;
· members of Board Committees (if any are appointed that are not directors of the Trustee);
· the Chief Executive Officer (CEO) of the CBH Superannuation Fund;
· the Chief Investment Officer (CIO) of the Fund;
· the Risk and Compliance Manager (RCM) of the Fund; and
· auditors, actuaries and service providers being appointed by the Board to perform material business activities of the Trustee.
Definition of a conflict
A conflict is a reference to a conflict between:
· the duties owed by the Trustee, or a responsible person of the Trustee, to beneficiaries and the duties owed by them to any other person;
· the interests of beneficiaries and the duties owed by the Trustee, or a responsible person of the Trustee, to any other person;
· an interest of the Trustee, an associate of the Trustee or a responsible person or employee of the Trustee and the Trustee’s duties to beneficiaries; and
· an interest of the Trustee, an associate of the Trustee or a responsible person or employee of the Trustee and the interests of beneficiaries.
The Trustee has determined some types of situations that could involve conflicts are:
· Investment decisions.
· Determining fees charged against member accounts.
· Requests for financial or other support from the employer.
· Amendment to rules to change benefit structure.
· Changes to unit pricing determination mechanisms.
· Appointment and removal of service providers.
· Surplus distribution decisions.
· Winding up and successor fund decisions.
· Determining the remuneration of Independent Directors.
· The same firm being appointed as the Fund’s internal and external auditor.
The situations listed above are not intended to be exhaustive. All responsible persons are required to determine if a conflict exists in any given situation and disclose the conflict accordingly.
Disclosure of relevant duties and relevant interests
The Trustee requires relevant duties and relevant interests to be disclosed:
· by incoming responsible persons prior to the person taking up the appointment;
· by responsible persons at the commencement of each meeting of the Trustee;
· by potential service providers as part of the tender process; and
· where an agenda item relates to the appointment of, or purchase from, an external provider.
The Trustee keeps a Register of Relevant Duties and Register of Relevant Interests to record all declared duties and interests. The registers can be accessed by clicking here.
All responsible persons and service providers are required to complete an annual personal statement confirming that the register of relevant duties and register of relevant interests shows all relevant duties and interests they hold.
Management of conflicts
Where it is determined that a conflict exists in relation to a particular issue, the Board will determine the degree of future participation of the affected person(s) in the item under consideration. This can include:
· Vacating the meeting room until consideration has concluded;
· Remaining in the meeting room, but not participating in either debate or vote;
· Participate in debate but not vote on any resolution; or
· Participate in both debate and vote – applicable for minor conflicts only.
Where a conflict has been disclosed in relation to a continuing issue, then there is to be on-going evaluation of the conflict.
A Director may in no circumstances participate in discussion or vote on an issue after making a declaration of conflict if they stand to make a personal gain or profit from the proposed action. This includes any gain or profit to a close personal associate or relative.
Failure to make a declaration
A failure to disclose may amount to a breach of the Trustee’s Fit and Proper Policy and, depending upon the nature of the conflict of interest or duty, the Board may take action against the individual who failed to disclose a conflict including cautioning, counselling or dismissal from the Board.