The Superannuation Legislation Amendment (Governance) Bill which changed the super fund governance model by requiring public superannuation funds to have a minimum of one third independent directors on their board, and an independent chair, will not proceed. Critically, it removed the equal representation model for employer and member representatives on boards of industry funds.
It will not be put to a vote in the Senate after independent senators, Labor and the Greens announced their opposition to the Bill.
Industry Super Australia has announced that it and the Australian Institute of Superannuation Trustees will commission a review by former RBA Governor and Treasury Secretary Bernie Fraser to lead the development of a best practice governance code of conduct for not-for-profit super funds by 30 April 2016.
The Code of Conduct would be mandatory for ISA and AIST member funds and complement APRA prudential standards and guidance.
