Trustees must co-operate on governance guidelines
Not-for-profit superannuation fund trustees have been warned that if they do not agree on fund governance guidelines they risk having them imposed by the Government.
The Australian Institute of Superannuation Trustees (AIST) will release the draft guidelines today, but the organisation’s chairman, Gerard Noonan, admitted there had been disagreement and divisions.
The AIST’s call for support for a voluntary principles-based approach stands in contrast to industry fund calls for financial planners to be subject to a tighter regulatory approach directly overseen by the Australian Securities and Investments Commission (ASIC).
Opening the Conference of Major Superannuation Funds on the Gold Coast, Noonan argued a voluntary, principles-based code had to be preferable to one imposed by the Government.
“We have to agree on a voluntary code because, if we don’t, the Australian Prudential Regulation Authority (APRA) will step in to impose a Governance code,” he said.
Noonan said he felt sure a voluntary, principles-based approach was in the best interests of the industry and would garner the respect of the current Government and future Governments.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.