Key element overlooked in Stronger Super

22 September 2011

 The Federal Opposition has claimed the Government omitted a key Cooper Review recommendation from its Stronger Super package – better corporate governance arrangements, including tougher rules around directors sitting on multiple superannuation boards.

The Opposition spokesman on Financial Services, Senator Mathias Cormann, also made clear he believed the Government needed to address the “current closed shop, anti-competitive arrangements in the default workplace superannuation market”.

“We are also disappointed that [Assistant Treasurer] Bill Shorten has failed to act on the very sensible Cooper recommendations to improve corporate governance arrangements in the super industry,” he said.

“Superannuation is big business with $1.3 trillion worth of Australians’ retirement savings at stake. So why is the Government not prepared to act on the Cooper recommendation to require independent directors on superannuation boards,” Cormann said.

“Why is the Government not prepared to act on the recommendation requiring directors wanting to sit on multiple superannuation boards to declare any foreseeable conflicts of interest to the Australian Prudential Regulation Authority?” the senator asked.

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“Bill Shorten has recognised the flaws in his original MySuper proposal,” Cormann said. “It is high time he did the same in relation to his approach to default workplace superannuation arrangements and in relation to the need for improved corporate governance arrangements in the superannuation industry.”

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