Industry Super Australia has released a report from Bernie Fraser which reviews the Government’s proposed governance changes as they relate to not-for-profit public superannuation funds, in particular mandatory requirements for independent directors and chairs, and to suggest alternative arrangements for those funds.
The theme of the report is that Board governance of industry and other not-for-profit funds could best be improved and deliver superior outcomes for members, by continuing to build on their strengths in values and skills, rather than through mandated minimum numbers of independent directors on their Boards.
The Australian Institute of Superannuation Trustees is close to finalising a new version of its Governance Code which is intended to promote the highest possible standards of governance across the whole NFP sector. The report recommends that its conclusions be incorporated in the Code.
The Code is planned to take effect from 1 July 2017.
The Government is still considering reintroducing the Superannuation Legislation Amendment (Governance) Bill to Parliament.