“The government is sensibly modernising the governance of our large and growing superannuation funds so that they are better placed to take advantage of investment opportunities in highly complex global capital markets,” BCA Chief Executive Jennifer Westacott said.
“With $2 trillion now under management of these funds, it is essential that their governance arrangements are updated in line with best practice to safeguard member interests.
“The Cooper Review in 2010 recommended similar changes after finding that ‘trustee governance structures have not kept up with developments in the industry’.
“The Financial System Inquiry also recommended that superannuation fund boards have a majority of independent directors, including an independent chair.
“There are further opportunities to reform superannuation governance, with the Financial System Inquiry also recommending that choice be available to all employees.
“Given the importance of superannuation in people’s retirement, everyone should have the choice to pick the fund that is right for them.
“The parliament should get behind this sensible modernisation of one of Australia’s most important endowments,” Ms Westacott said.
For further information contact:
Scott Thompson, Director, Media and Public Affairs
Business Council of Australia
Telephone (03) 8664 2664 • Mobile 0403 241 128