The Assistant Treasurer, Senator the Hon Arthur Sinodinos AO, has released for public consultation a discussion paper canvassing the issues of governance, transparency and default superannuation funds in modern awards.
This paper 'Better regulation and governance, enhanced transparency and improved competition in superannuation' builds on the Government's election commitment to restore stability and certainty to Australia's superannuation system and is a core component of the Government's policy program to build a stronger and more prosperous economy.
The purpose of the paper is to seek feedback on governance and transparency issues contained in the Government's superannuation election commitments. The paper also provides an opportunity for consultation on opening up competition and increasing transparency in relation to default employee superannuation fund contributions. This feedback is sought ahead of the development of possible legislation and regulation.
The key issues raised in the paper are:
- How best to ensure an appropriate provision for independent directors on superannuation trustee boards. Issues canvassed include how 'independence' could be defined and what could constitute optimal board composition.
- How best to complete the outstanding aspects of the current regulatory regime, including:
- to what extent the choice product dashboard should reflect the MySuper product dashboard; and
- which model of portfolio holdings disclosure would best achieve an appropriate balance between improved transparency and compliance costs.
- The best way to improve transparency and competition in the employee default superannuation funds market.