Financial Services Council hits back at ISN on governance
The Financial Services Council (FSC) has hit back at Industry Super Network (ISN) criticism of its superannuation governance policy, claiming it adopts the highest standards available.
FSC chief executive John Brogden said the ISN's suggestion that the FSC's definition of independence was inadequate overlooked the fact that the FSC's policy adopted Australian Securities Exchange (ASX) Corporate Governance Council, Corporations Act and Australian Prudential Regulation Authority (APRA) definitions of independence.
"It uses the highest standard available in defining independence of a director from a super entity. There is no higher alternative," he said.
And in a not-so-subtle hit at the ISN's own policy approach, Brogden made clear that the FSC policy expressly prohibits multiple directorships where a director sits on competing public offer super fund boards.
"This is designed to prevent directors from having conflicted directorships where funds compete for the same members - to do otherwise would be to allow Virgin and Qantas to share directors," he said.
"This particular conflict cannot be managed, so we have sought to prohibit it as it is not covered in APRA's prudential standards for superannuation."
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