Towers Watson urges no immediate action on fund governance
Major consultancy, Towers Watson has examined the question of altering the governance arrangements of superannuation funds and concluded that while it might ultimately prove desirable, it does not need to happen yet.
In an analysis published this month, Towers Watson argues that "the case has not yet been made for the compulsory appointment of independent directors".
However it goes on to say such arrangements should, nonetheless, be encouraged as best practice "especially where it can add value to the overall composition and decision-making of the board".
"In instances where a board believes that it does not need any independent directors, we would suggest they document their reasoning for future reference, and consider communicating it to their members," the Towers Watson analysis said, suggesting the board would then be "very well prepared if the regulator was ever to question the composition of the board".
"We also believe there should be more public discussion on an appropriate definition of an independent director in order to obtain more widespread agreement in the industry," the analysis said.
"In the meantime, if a board chooses to appoint independent directors, then we suggest that they disclose to their members the independence criteria they adopted, and to regularly re-assess their independent directors against those criteria as circumstances may change over time," it said.
Recommended for you
The super fund has launched Retirement Manager, a digital advice tool helping members plan income, spending, and retirement confidence with integrated support.
APRA has warned retail super trustees that financial adviser involvement in recommending platform products does not diminish their obligations, as regulators turned the spotlight on the Shield Master Fund and First Guardian Master Fund during a meeting with fund CEOs.
AMP’s chief economist has unveiled a wish list for the Australian government’s Economic Reform Roundtable.
Australian retirees could increase their projected annual incomes between 3 and 51 per cent by incorporating personal and household data into their retirement income strategies, according to new research.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
3
DomaCom DFS Mortgage
67.30 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
