Fund chairman admits resigning positions
Incoming First State Super chairman Neil Cochrane admits resigning multiple positions to remove conflicts of interest.
The potential for conflicts of interest has prompted the incoming chairman of First State Super, Neil Cochrane, to resign roles he holds with Colonial First State Global Asset Management, Australian Administration Services and Auscoal.
Cochrane, who is also the chairman of Commonwealth Bank Super, told the Association of Superannuation Funds of Australia (ASFA) conference in Perth that he believed he needed to stand aside from the positions because they would have created the perception that he was conflicted in his role as chairman of First State.
However he said he would not be resigning his position as chairman of the Commonwealth Bank fund because he did not believe the two funds were in competition, with the Commonwealth fund being a closed defined benefit fund while First State Super was a public offer fund.
Speaking during a discussion on fund governance, Cochrane said he viewed independence on a board as requiring “independence of mind”.
“Members of trustee boards need to step away from the daily activity of the fund and the noise of the market if they are to add value to the work of management,” he said.
However Cochrane warned that if boards sought to second-guess management, then the concept of independence fell away.
The discussion on governance came in the context of the Assistant Treasurer, Arthur Sinodinos, having signaled the Government would be proceeding to address governance issues with respect to superannuation funds including the holding of multiple directorships.
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