The SMSF Owners’ Alliance has welcomed Assistant Treasurer Josh Frydenberg’s call for greater scrutiny of the governance of Australian Prudential Regulation Authority (APRA)-regulated superannuation funds, especially in regard to trustee independence.
Frydenberg commented on the weekend that he was in favour of having a greater number of independent directors and an independent chair on the boards of large superannuation funds.
“The supervision of APRA-regulated funds should be at least as stringent as the governance standards required of banks and other large corporations,” SMSF Owners’ Alliance executive director Duncan Fairweather said.
“In particular, a majority of the trustee company boards of public offer funds should be independent.
“Independent trustees are better placed to make objective decisions in the interests of all fund members; conflicts of interest are likely to arise less often and be better managed.”
Fairweather said APRA-regulated super funds needed to demonstrate greater transparency, not only in regard to investment decisions and performance, but also in the area of governance.
This included directors’ remuneration, how the directors were appointed, what their relevant credentials for the position were and other related roles they might hold, he said.
“It’s in the interests of every working and retired Australian, who have $750 billion held in trust in super accounts,” he said.
