Future Fund appointment may test perceptions
In what represents an unusual move by a Commonwealth agency, a key executive of the company appointed as the asset consultant of the Future Fund has been appointed the fund’s chief investment officer.
Watson Wyatt, which in 2005 was appointed the asset consultant to the Future Fund, announced that the head of its Investment Consulting Practice in Australia, David Neal, had taken up the Future Fund chief investment officer role.
The appointment is regarded as unusual because of the corporate governance principles required of Commonwealth agencies when dealing with key suppliers and consultants.
Those principles, outlined by the Australian Public Service Commission, state that Government agencies should “ensure there are not actual or perceived conflicts of interest by including full and frank disclosure of any past, present or proposed future relationships, connections or interests with bidders”.
While there are no strict guidelines specifically prohibiting the employment of key personnel from a supplier to a Government agency, there are clear-cut rules prohibiting those suppliers from employing key people from within the Government agency.
It is not yet known how Neal’s appointment will impact Watson Wyatt’s ongoing arrangements with the Future Fund or whether it will be raised as an issue by other asset consulting firms.
In the meantime, Watson Wyatt has announced Graeme Miller will be replacing Neal as head of the Australian Investment Consulting Practice.
AUTHOR
Mike Taylor
Recommended for you
Trustee and fund administration platform MSC Group has promoted Shelley Brown as its chief operations officer, having successfully completed the integration of the Certane Corporate Trust business.
Australian Unity’s group managing director and chief executive has announced his plans to retire at the end of the year after two decades leading the company.
TAL has appointed a senior manager for investment strategy and portfolio management who joins from a lead role at AIA.
Global wealth management platform FNZ has appointed a new group head of APAC, while boutique investment manager TWC Invest welcomes a chief technology officer.
