Union super trustees uncovered by increased APRA powers
Despite the Government's proposed changes to superannuation fund governance, the Australian Prudential Regulation Authority (APRA) will still not have the power to remove industry fund trustee directors drawn from the nominees of employer bodies and unions.
The Federal Treasury has confirmed to the Parliamentary Committee reviewing the Government's legislation that the increased powers being granted to APRA will only apply to independent directors.
Treasury's confirmation of the limitations of the proposed new powers being granted to APRA comes in the face of significant concern expressed by some superannuation industry spokesmen about the degree to which the regulator could influence trustee director selection and removal.
However, answering questions on notice from the Parliamentary committee, Treasury made clear that the proposed increased power for APRA would not apply to non-independent directors, such as those nominated by employer and union organisations.
"The proposed regulatory changes provide APRA with the power to make prudential standards governing the appointment and removal of independent directors," it said. "This power has [been] provided to help facilitate the proposed regulatory changes.
"The proposed regulatory changes are limited to independent directors," the Treasury response said.
The Treasury response had noted earlier that "APRA does not have a power to directly require the removal of a director from an RSE licensee's Board, other than by disqualifying a person on the basis that the director is considered by APRA to not be fit and proper".
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