The Assistant Treasurer on Thur 28.11.2013, released a discussion paper canvassing the issues of regulation, governance, enhanced transparency and improving competition in the selection process for default superannuation funds in modern awards.
The paper, Better regulation and governance, enhanced transparency and improved competition in superannuation, forms part of the Coalition’s election policies aimed at restoring stability and certainty to the superannuation system. Key issues raised in the paper include:
- improving transparency and competition for default super funds in modern awards. In particular, comments are sought about the existing model (which commences on 1 January 2014) or whether some new model would best allow for the selection and ongoing assessment of superannuation funds eligible for nomination as default funds in modern awards;
- an appropriate provision for independent directors on superannuation trustee boards (eg optimal board composition; process for appointing directors; management of conflict of interest; and how “independence” could be defined); and
- outstanding aspects of the regulatory regime, including the extent to which the choice product dashboard should reflect the MySuper product dashboard and the appropriate model for investment portfolio holdings disclosure.
The Government said it is committed to improving superannuation governance, which may be aligned with the corporate governance principles applicable to, for example, ASX-listed companies or other APRA-regulated entities (eg banks and insurance companies).
Senator Sinodinos said that addressing outstanding aspects of the MySuper reforms (eg the disclosure of information to fund members) is also key to ensuring members and employers can make informed decisions about the relative performance of funds. According to the Government, default superannuation funds should benefit from genuine choice and competition by ensuring any MySuper product can compete freely in the default superannuation market.
The paper is also seeking views on a possible deferral of the commencement date of the MySuper transparency measures beyond 1 July 2014. Senator Sinodinos said feedback is being sought ahead of the development of possible legislation and regulation.
SUBMISSIONS due by 12 February 2014.
Source: Assistant Treasurer media release No 6 of 2013, 28 November 2013
[LTN 231, 28/11/13]