The prudential watchdog hand-balling responsibility to Cbus to ensure its CFMEU-nominated director picks are up to the job exemplifies the “preferential treatment” super funds get over banks, which could ultimately leave retirees stranded without savings, a governance expert has warned.

Swinburne University senior lecturer in corporate law Helen Bird said the regulator was tough on banks and insurers but a historic bias in its operating model meant Australia’s $1.4 billion industry super fund sector got away with far less oversight.