Limit super directors to three terms - APRA

superannuation/boards/APRA/

5 January 2016
| By Mike |
image
image
expand image

Superannuation fund trustee directors should not ordinarily serve more than three terms or around 12 years, according to the Australian Prudential Regulation Authority (APRA).

The superannuation fund regulator has issued a letter to superannuation funds in which it has outlined the results of a consultation process on governance arrangements.

And while steering clear of some of the more controversial elements of the governance debate, the regulator has made clear it expects fund to have a policy in place regarding the maximum tenure of trustee directors.

It said the submissions it had received had been generally supportive of the new requirement for a tenure policy, with some parties requesting that APRA confirm expectations regarding the maximum number of terms a director can be appointed to the Board.

The APRA letter said some submissions had indicated that the maximum tenure for a director should be in the vicinity of nine to 12 years — or no more than three terms.

"APRA considers that appropriate board renewal supports effective governance of Registrable Superannuation Entity (RSE) licensees and their business operations, and this view was supported by submissions," the letter said.

There regulator said it therefore intended to update guidance to "reflect both that boards are expected to consider director's tenure at the end of each term served, and that APRA expects that there would be limited circumstances in which maximum tenure limits exceeding 12 years would be appropriate".

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

2 weeks 1 day ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 6 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND