Powered by MOMENTUM MEDIA
subscribe to our newsletter

SMSF stakeholders give thumbs up to new legislation

Reporter
29 June 2015 — 1 minute read

Industry stakeholders have voiced their support for the government’s proposed legislation requiring APRA-regulated funds to have an independent chair and one third of their directors independent.

On Friday last week, Assistant Treasurer Josh Frydenberg announced the release of exposure draft legislation proposing that independents make up at least one third of the trustee board of APRA-regulated superannuation funds and that they have an independent chair.

The new governance rules would not, however, apply to SMSFs.

Advertisement
Advertisement

However, the SMSF sector has welcomed the government’s announcement as a positive move for the industry overall.

“Increased independence of superannuation fund boards should allow those saving for their retirement, or drawing down on their savings in retirement, more confidence that their funds are being managed and invested in their best interests,” said SMSFA’s chief executive and managing director Andrea Slattery.

“More broadly, ensuring superannuation funds have quality governance is significant, considering the important role that superannuation has to play in Australia meeting the challenge of an aging population over the next 40 to 50 years,” she added.

Similarly, Chartered Accountants Australia and New Zealand's head of superannuation, Liz Westover, has long advocated for such a move from the government.

“As increasing amounts of Australians assets are tied up in superannuation, the necessity for good governance and transparency over the custodians of those monies cannot be understated,” Ms Westover said.

“These changes will ensure a stronger superannuation system to support the retirement future of Australians."

The SMSF Owners’ Alliance (SMSFOA) also said it has a “vested interested” in ensuring good management of APRA-regulated funds, given that many SMSF members have some of their savings invested in them.

“We expect that an injection of more independent directors to the trustee companies of superannuation funds will lead to better decision making and greater transparency,” the SMSFOA stated.

“It is crucially important that the draft legislation properly defines 'independent'. There must be transparency with regard to the appointment process, the credentials of directors, other positions held, potential conflicts of interest and remuneration,” the alliance said.

SMSF stakeholders give thumbs up to new legislation
smsf logo
smsfadviser logo

Are you up to date with the legislative changes from 1 July? Contribution cap increases, super guarantees, age increases, SG rate increases. The budget announcement changes. Don’t be caught off guard by your clients’ questions. Prepare for any scenario with the SMSF Foundations course. 21 CPD hours available. Learn more

join the discussion

Latest poll

Do you have clients that are aged 65 or 66 planning to trigger the bring forward rules?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.