Super fund to renew board after involvement from APRA

24 June 2019
| By Hannah |
image
image
expand image

Local Government Super (LGS) is seeking an independent chair and two new independent directors after ongoing discussions between its board and the Australian Prudential Regulation Authority (APRA), as well as a new chief executive.

The Board agreed to a constitutional change to enable these board appointments to better meet the regulator’s requirements around superannuation governance in an attempt to enhance the fund’s governance, performance and sustainability.

The change, which was approved by LGS shareholders last Tuesday, would enable the fund to recruit directors with new skills to supplement the experience of the existing directors, two of which would be displaced to make space for the new chair and two independent replacements. The size of the board would thus grow from eight to nine.

LGS chair, Bruce Miller, noted that expertise in the areas of business and investment management were especially needed in the new directors, in line with APRA’s recent guidance and expectations, and this would be a consideration in their selection.

“Bringing in independent directors with new skills, capabilities and perspectives will strengthen the Board’s ability to provide effective oversight to the execution of the Fund strategy including ensuring that the protection of the best interests of members and delivering strong member outcomes is the top priority in a challenging financial environment,” he added.

LGS expected the new chair and director to be in place by 31 August, this year. Recruitment for the new chief executive was already underway.

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. ...

1 year ago
Kevin Gorman

Super director remuneration ...

1 year 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 ...

1 year ago

The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation ...

4 hours ago

Super funds had a “tremendous month” in November, according to new data....

4 days 3 hours ago

Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion....

4 days 8 hours ago