Superannuation sector heavyweight Garry Weaven says the prudential regulator should stick to measuring funds’ success by their returns instead of caving to “bastardised political interference” in governance and performance testing.

Launching a vehement defence of industry funds’ controversial governance model, Mr Weaven said the structure where boards are cherry-picked by unions and employer groups was the “secret sauce” to their outperformance even if the Coalition and listed financial services companies wished otherwise.