POWERED BY MOMENTUM MEDIA
Hypocrisy in superannuation trustee expectations
Superannuation trustees ought to hold themselves to the same standards of governance that they demand of the companies they invest in, according to Equipsuper chief executive Danielle Press.
Speaking at the 2011 Association of Superannuation Funds of Australia conference yesterday, Press said trustee boards should be taking their lead from the ASX Principles of Good Corporate Governance as a minimum.
"There's a huge amount of hypocrisy in this industry, where we sit back and we criticise the corporates we invest in or are going to invest in, for poor governance and poor standards and poor disclosure," Press said.
Trustee governance would also vary from fund to fund, with the size and complexity of the entity determining what was appropriate, Press said. Implementing adequate levels of governance would not be easy, but that should not deter trustees from doing the right thing, she added.
The recently released proposed Australian Prudential Regulation Authority (APRA) standards for superannuation trustees will form the basis for a governance framework over the next 12 to 18 months, Press said.
"APRA is likely to take an 'if not, why not?' approach to these things, so we're all going to have to formulate our reasons and our decisions," she said.
The onus will be on trustees to explain, for example, why they have not chosen to include an independent director on their board. Similarly, trustees will have to explain to APRA why they think it is reasonable for one of their directors to sit on two boards at once, she said.
Trustees would likely find the new levels of disclosure around director remuneration, conflicts of interest and conflicts of duty confronting, Press added.
"It means that the bonnet's been lifted and people are actually looking in to what we're doing. But you know what? We're fiduciary trusts. We have obligations to our members," she said.
Recommended for you
Australia’s superannuation sector is being held back by overlapping and outdated regulation, ASFA says, with compliance costs almost doubling in seven years – a drain on member returns and the economy alike.
Two of Australia’s largest industry super funds have thrown their support behind an ASIC review into how stamp duty is disclosed in investment fee reporting, saying it could unlock more capital for housing projects.
The corporate watchdog is preparing to publish a progress report on private credit this September, following a comprehensive review of the rapidly expanding market.
The fund has appointed Fotine Kotsilas as its new chief risk officer, continuing a series of executive changes aimed at driving growth, but NGS Super’s CEO has assured the fund won’t pursue growth for growth’s sake.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
