Survey reveals support for super governance changes
The Federal Government's proposals to change governance arrangements for superannuation funds may have more support in the superannuation industry than originally believed, with a new survey indicating the industry respondents are split on the issue.
The survey, conducted by Money Management's sister publication, Super Review, during the recent Association of Superannuation Funds of Australia conference in Perth, revealed a narrow majority of respondents supporting a move to have superannuation funds subject to the same rules as publicly-listed companies.
Asked whether they agreed that superannuation funds should operate under the same laws as publicly-listed companies, 51 per cent of respondents to the Metlife/Super Review Super Outlook survey answered "yes".
The result is significant because of the high numbers of respondents to the survey who described themselves as superannuation fund trustees (30.6 per cent) and superannuation fund executives (22.4 per cent).
The Assistant Treasurer, Arthur Sinodinos, used a recent discussion at a Financial Services Council breakfast event to outline the Government's approach to superannuation fund governance and the desirability of a majority of independent directors on trustee boards.
Commenting on the Government's release of a white paper on the issue, Sinodinos said: "We're not saying that there is a one size fits all, everybody has got to be in a certain type of fund. But what we are saying is that when it comes to governance, ultimately, whatever the sort of fund you're in, you've got to be accountable to your members in a way that is transparent and publicly defensible".
"Therefore we've said when it comes to the Government structure, including in the industry funds, that we should look at some of the principles that the stock exchange has for corporate governance, look at some of the principles that the Australian Prudential Regulation Authority (APRA) applies in these areas," the minister said.
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