Resistant industry funds out of step - O’Dwyer
The Assistant Treasurer, Kelly O'Dwyer has directly cited industry fund Cbus as the reason why the governance of superannuation funds has to change with at least one-third independent directors including an independent chairman.
O'Dwyer cited evidence given to the Trade Union Royal Commission revealing that Cbus has provided the Construction, Forestry, Mining and Energy Union with confidential member information as a primary reason for pursuing change to superannuation governance arrangements.
Addressing the Committee for the Economic Development of Australia (CEDA), O'Dwyer said that by resisting the governance changes, industry superannuation funds were out of step with many other parts of the Australian economy.
"They are certainly out-of-step with other prudentially regulated sectors, such as banking and insurance, which are required to have a majority of independent directors. That is the minimum. And it is done to improve performance and accountability," the minister said.
"I say that it is time we raised the bar. It is time the superannuation industry had a governance structure that reflects the world in which we live today," she said.
O'Dwyer said that if Australians were being forced to put their money into the superannuation system, superannuation funds needed to have the highest quality, best equipped board leadership.
"The reality is that by clinging to an old set of governance rules, the superannuation industry is not only at risk of being left behind — it is being unfair to everyday Australians required to participate in our super system," she said.
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