Coalition commits to legislating tougher corporate governance standards

The Federal Opposition has promised to legislate tougher corporate governance standards for superannuation funds consistent with self-imposed changes to be implemented by funds which are members of the Financial Services Council (FSC).

The Opposition's promise came in the wake of the FSC on Wednesday outlining a new set of corporate governance standards which demand of member companies that their superannuation funds have an independent chair, that the majority of directors are independent, that remuneration of directors and senior management be disclosed, that multiple directorships not be held, that funds develop environmental, social and governance risk management policies, and that they publicly disclose a proxy voting policy.

Commenting on the FSC standards, the Opposition spokesman on Financial Services, Senator Mathias Cormann, said they had highlighted a failure on the part of the Federal Government.

He claimed the FSC's decision to impose higher standards than those applicable under current laws "exposes Bill Shorten's failure to act in relation to this important and necessary area for superannuation reform".

As well, Cormann gave an undertaking that in the event the Coalition gained Government it would work in consultation with all the relevant stakeholders to develop and impose such standards.

He claimed the Government had failed to pick up on a series of sensible recommendations contained in the Cooper Review on improving superannuation corporate governance.

"Since the report was released Bill Shorten and Labor have either outright opposed or ignored many of the sensible Cooper Review recommendations to improve superannuation fund governance without providing an acceptable explanation of why that is the case," Cormann said.

"If he continues to ignore the need for these important reforms, Bill Shorten will confirm once more that he is far more interested in protecting the vested interests of his friends in the union movement than protecting the public interest," he said.