Legislation relating to Stronger Super has now been passed by both houses of parliament which will introduce a higher governance standard for many super funds and trustees.
The Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 includes three major changes:
- a requirement for Trustees to put the members’ interests first at all times
- outlining specific trustee duties for Directors, such as acting honestly and in member’s best interests
- allowing APRA with power to make prudential standards for super, giving it the same power over super funds as it already has over banks and insurance companies
How this impacts on AvSuper members
The AvSuper Trustee broadly sees these as positive enhancements for many super funds, but we remind our members that as a profit for members super fund, AvSuper already meets the majority of the proposed changes, in particular requirements to act only in the best interests of Fund members. At this stage we expect to be able to meet the new requirements easily within our existing Fund Governance framework, with no material impact for members.
We’ll provide more detail on the proposed changes in our Annual Report to members, (expected to be issued later in the year, together with your annual member statement) and we will continue to keep you informed as the Stronger Super reforms take shape. However, as always, please contact our Member Advice team if you have any specific queries.