Superannuation funds "should be as transparent as listed companies", says Financial Services Council (FSC) chief executive John Brogden.
While he welcomed the Government's recent measures that require funds to disclose trustee remuneration and fund assets, he argued the Government should go further and adopt the FSC's superannuation corporate governance policy.
The FSC policy, released in March, calls for an independent chair for superannuation funds – along with a majority of independent directors.
The requirement for an independent chair would bring superannuation funds into line with listed companies, which are bound by the CPS 510 requirement that "the chairperson of the Board of directors must be an independent director".
In addition, the FSC policy states that director and senior management remuneration should be disclosed where it is paid directly from the fund. This requirement would be developed alongside Australian Prudential Regulation Authority prudential standards, said the FSC.
Directors should not hold multiple and competing superannuation fund board positions, according to the FSC – a requirement that is in line with the Stronger Super measures.
Finally, the FSC called for trustees to develop an environmental, social and governance (ESG) policy and disclose their proxy voting records – two requirements that do not exist under current law for superannuation trustees.
