The Financial Services Council (FSC) looks forward to the continued discussion on the governance of superannuation funds.
Every Australian deserves the best possible outcome in their superannuation and the highest standard of governance.
The proposal for independent directors on the superannuation trustee boards is a moderate reform that will apply to all superannuation funds – retail, industry, corporate and public sector. The Government’s Financial System Inquiry and the previous Labor Government’s Cooper Review both recommended the appointment of independent directors on superannuation trustee boards.
The regulator for the superannuation sector, APRA, has made it clear that independent directors play an important role in protecting superannuation consumers from conflicts of interest.
The governance of superannuation funds was established in the early 1990s and has failed to keep pace with community expectations for higher governance standards. It is time for reforms that will ensure the ongoing sustainability of the superannuation industry into the future.