Govt moves on super fund governance
Superannuation funds will have to appoint a majority of independent trustee directors under proposals contained in a Treasury White paper released today.
The white paper, released by the Assistant Treasurer, Senator Arthur Sinodninos, will be viewed as directly targeting industry superannuation funds.
The white paper makes clear that a majority of independent directors is the standard for publicly listed companies.
In releasing the document, Sinodinos said the Government wanted to align superannuation fund governance more closely with corporate governance principles, particularly those relating to companies listed on the Australian Securities Exchange (ASX).
The white paper also canvasses changes to the default funds under modern awards regime and injecting more competition into the area — consistent with the policy approach outlined by the Coalition leading up to the Federal Election.
Sinodinos made clear that the release of the white paper represented a precursor to a round of extensive consultation.
The white paper not only points to a majority of independent directors but to the manner in which they are selected and the definition of "independent".
The move has been welcomed by the Financial Services Council (FSC), with chief executive John Brogden saying the issues being canvassed were consistent with the approach outlined by his organisation.
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