Best practice – not board selection – vital for super fund governance: ASFA
As the debate over the best model for superannuation fund governance goes on, the Association of Superannuation Funds of Australia (ASFA) has said excellence and best practice should be top priority — no matter who sits on the board.
"While the debate up until now has largely focused on the level of independence of fund boards, what has been lost is a detailed discussion on the skills and experience required to navigate the changing nature of Australia's superannuation system and achieve positive retirement outcomes for fund members," ASFA chief executive officer Pauline Vamos said.
Vamos said she did not want to see a "one size or structure fits all" board, as is the case in listed and private companies.
She highlighted three main outcomes the debate should aim for. First, it should allow flexibility and authority to hire individual board members with the required skills, knowledge and experience.
Second, it should let board members act independently from the influence of external relationships, whether as individuals or as a collective, to focus on members' interests. Finally, there should be accountability of board members, individually and as a whole.
She said that as more of the population moves to de-accumulation mode, more skill will be needed around risk management and investment management.
"The community benefits from the very different structures behind the various sectors across the superannuation industry. Each sector, whether it be retail, industry, corporate or government, has a unique history and value proposition," Vamos said.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.