POWERED BY MOMENTUM MEDIA
Parent companies should be excluded from FAR: ASFA
The Financial Accountability Regime remuneration proposals should not be extended to cover parent companies, according to the Association of Superannuation Funds Australia (ASFA).
Appearing before the Senate Economics Committee, ASFA deputy chief executive Glen McCrea discussed the legislation proposed in the Financial Accountability Regime (FAR).
Under the FAR draft released last October, accountable entities including superannuation industries must defer at least 40% of the variable remuneration of their directors and most senior and influential executives for a minimum of four years, and reduce their variable remuneration for non-compliance with their accountability obligations.
Asked by Senate Economics Committee chair, Paul Scarr, whether he believed this could be expanded to include parent companies with superannuation funds in their group, McCrea disagreed and said he did not believe the Government wanted to hold chief executives accountable.
“Ultimately, accountability for the fund is on the trustee and the Government has introduced a lot of legislation to clarify that and ensure there is that accountability. But historically, there have been arrangements for large corporates where they would have a large super fund sitting there that provided services and the members of that larger corporation were making contributions to that fund,” McCrea said.
“The issue of whether the parent company CEOs and executives should be accountable… you would want to be consistent across the economy and then we would be looking at supermarkets, at aviation, telecommunications and I don’t think the Government wants to have a regime where it is controlling the remuneration of people from big corporates.”
He concluded he felt there was unnecessary for legislation to be extended to include this matter and that the Government should be careful it did not unintentionally extend into it.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
