The Industry Super Network (ISN) has announced a new range of governance and disclosure requirements for superannuation funds, a move which has drawn partial support from Shadow Minister for Financial Services and Superannuation Mathias Cormann.
The measures, announced by new ISN chair and former Victorian premier Steve Bracks, recommend "universal governance and disclosure standards for the entire super industry", according to the ISN.
This includes the disclosure of director information and remuneration, fees paid to material professional and financial service providers, and related party transactions, the ISN stated.
The new standards also call for integrity in business conduct, in particular that related party transactions be made at 'arm's length'.
Bracks said all standards legislated by governments should apply to all parts of the system, including investment managers and other material service providers, rather than just funds and trustees, given the predominance of an outsourcing model.
Cormann said it was "encouraging" that in the wake of Cooper Review's recommendations around governance, large parts of the superannuation sector are now actively engaged with the need for improved governance standards in superannuation.
However he said it was disappointing that the ISN had not yet embraced the need for independent directors on superannuation boards.
"In the absence of any leadership from the current Government, we would encourage the ISN to go further in the interim, in providing guidance to their members on a range of important corporate governance issues, in particular on board composition and mandatory disclosure of conflicts of interest," Cormann stated.
