Best practice – not board selection – vital for super fund governance: ASFA
As the debate over the best model for superannuation fund governance goes on, the Association of Superannuation Funds of Australia (ASFA) has said excellence and best practice should be top priority — no matter who sits on the board.
"While the debate up until now has largely focused on the level of independence of fund boards, what has been lost is a detailed discussion on the skills and experience required to navigate the changing nature of Australia's superannuation system and achieve positive retirement outcomes for fund members," ASFA chief executive officer Pauline Vamos said.
Vamos said she did not want to see a "one size or structure fits all" board, as is the case in listed and private companies.
She highlighted three main outcomes the debate should aim for. First, it should allow flexibility and authority to hire individual board members with the required skills, knowledge and experience.
Second, it should let board members act independently from the influence of external relationships, whether as individuals or as a collective, to focus on members' interests. Finally, there should be accountability of board members, individually and as a whole.
She said that as more of the population moves to de-accumulation mode, more skill will be needed around risk management and investment management.
"The community benefits from the very different structures behind the various sectors across the superannuation industry. Each sector, whether it be retail, industry, corporate or government, has a unique history and value proposition," Vamos said.
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