Consumer advocacy group CHOICE has welcomed the Federal Government’s announcement that it will introduce legislation to improve governance of superannuation funds.
The draft legislation will require all superannuation funds, except Self-Managed Super Funds, to have a minimum of one third independent directors on their trustee board and to appoint an independent chair.
“CHOICE welcomes the Federal Government’s attention to governance of superannuation funds. Superannuation is essential and there should be a high duty of care towards these retirement savings,” says CHOICE Acting CEO Matt Levey.
“Ensuring that all funds are held to high standards of governance will mean more consumers have a secure retirement.”
“Both the 2010 Cooper Review and the recent Financial System Inquiry (FSI) Final Report called for minimum standards for independent governance of superannuation. The Government has proposed a model that uses the best elements of the Cooper Review and FSI proposals with a reasonable transitionary period.”
“This is a sensible change that will strengthen the superannuation system for the benefit of consumers.”
