The Australian Institute of Superannuation Trustees has flagged issues with recent media coverage of the Government’s proposed revision of annual members’ meeting (AMM) notice regulations.
It had been reported in the Australian Financial Review that assistant treasurer Stephen Jones’ proposed amendments to the Superannuation Industry (Supervision) Act 1993 and the Superannuation Industry (Supervision) Amendment (Annual Members’ Meetings Notices) Regulations 2022 would drag down transparency from super funds.
The reporting said super funds would now only need to disclose aggregated expense amounts in AMMs rather than itemised expense amounts.
In a letter to the media, AIST chief executive, Eva Scheerlinck, defended the changes saying the current regime of AMM notice regulations required overly-detailed disclosure of super fund expenditure that was confusing for fund members and inconsistent with other public information.
“Every year, super funds hold an annual member meeting and give members the opportunity to ask questions of the board and executive.
“Prior to that meeting, funds send out a meeting notice and the law requires that certain information be disclosed to members in that communication, to help facilitate an understanding of the fund’s operations. So far, so good.
“However, the information provided should be meaningful and relevant, and not an overwhelming shopping list of all the expenditures of the fund, which could amount to hundreds of individual line items.”
Scheerlinck said reporting on the proposed changes in the past week had misunderstood the intent and effect of the amendments.
“Disclosure of expenses in aggregate, for political donations, marketing and sponsorships, industrial body payments and related party payments as proposed under the revised regulations, provides a level of accountability and transparency that will achieve a higher level of member engagement and understanding than line by line disclosure.
“The requirement to hold an annual member meeting does not change, which means members will continue to have the opportunity to hear from directors and executives and ask them questions.
“We appreciate the opportunity to set the record straight on behalf of profit-to-member superannuation funds and their millions of members across Australia.”
