POWERED BY MOMENTUM MEDIA
Executive directors problematic on retail fund boards
Retail superannuation funds should steer clear of appointing executive directors, according to Superannuation Consumers' Centre (SCC).
The SCC has used its submission to the Financial System Inquiry (FSI) to argue that the inclusion of executive directors is not "consistent with the duty directors owe to members.
"Executives are more likely to be focused on the short term interests of the business rather than the longer-term interests of members," the submission said.
"We also think retail fund boards should include directors with proven expertise in member/consumer issues".
The SCC was established was established by consumer group Choice in 2012 and, elsewhere in its submission, states that it supports reform of super fund governance and support the broad approach in the ASX's Corporate Governance Principles, with the exception of the majority independent director approach.
It said with respect to the composition of superannuation fund boards it supported the one third, one third, one third approach for industry funds recommended by the Cooper Review.
"It is our assessment that the stakeholder model has delivered value for members to date and we are not aware of evidence to the contrary," the submission said.
"By contrast recent research reflecting on the impact of the 2003 ASX rules requiring listed companies to have a majority of independent directors suggests independent directors have tended to lack relevant industry experience and understanding and have driven dramatic pay increases," it said.
Recommended for you
Introducing reforms for strengthening simpler and faster claims handling and better servicing for First Nations members are critical priorities, according to the Super Members Council.
The Commonwealth Bank has warned that uncapped superannuation concessions may be “unsustainable” and has called for the introduction of a superannuation cap.
Superannuation funds have posted another year of strong returns, but this time, the gains weren’t powered solely by Silicon Valley.
Australia’s $4.1 trillion superannuation system is doing more than funding retirements – it’s quietly fuelling the nation’s productivity, lifting GDP, and adding thousands to workers’ pay packets, according to new analysis from the Association of Superannuation Funds of Australia (ASFA).
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
