Equal representation on boards benefits sector: Fiona Reynolds

20 March 2012
| By Mike |
image
image
expand image

The Australian Institute of Superannuation Trustees (AIST) has defended the equal representation of employers and employees on the boards of not-for-profit superannuation funds, which have been publicly criticised for being union dominated.

Opening the Conference of Major Superannuation Funds (CMSF) in Brisbane, AIST chief executive Fiona Reynolds claimed the not-for-profit equal representation model had been placed under attack by vested interests.

It was a claim backed by AIST president Gerard Noonan, who claimed the equal representation model was capable of withstanding more scrutiny than that applying to the 'for-profit' sector.

However, it was Reynolds who argued that the governance model applying to banks and other financial institutions were not suited to the not-for-profit funds sector.

She said the requirements with respect to not-for-profit funds were "fundamentally different", but nonetheless delivered transparency and disclosure.

"Profit before member interests is the ulterior motive of our critics," she said.

"The benefits which flow from the not-for-profit sector are clear for everyone to see, and were achieved via equal employee and employer representation on trustee boards," Reynolds said.

She said those who were arguing for change had yet to provide justification for their claims.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The superannuation industry will be judged by its member services rather than how effectively it accumulates wealth, according to Stephen Jones....

17 hours ago

APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers....

17 hours ago

The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members. ...

3 days 16 hours ago