COSBOA today (30 Nov 2015) called on the Senate to pass the legislation for improving governance of superannuation funds in Australia to ensure that superannuation funds have certainty.
Peter Strong, no rx view CEO of COSBOA, cialis stated today “we have a situation in Australia where trillions of dollars of people’s retirement funds are managed by hundreds of superannuation funds. The industry funds where most of the money is to be found have an odd governance process where directors are chosen on where they work not on what particular knowledge and skills they possess.”
COSBOA’s members are often shocked at the thought that large financial institutions such as superannuation funds can have such unprofessional governance processes. Good businesses know the value of good governance. Requiring superfunds, both industry and retail, to have a minimum third of independent directors will see different skills and expertise brought into superfund boards. Independent directors can hold other directors accountable for their conduct, particularly in relation to conflicts of interest.
Peter Strong added “small business employers are forced to do the work of superannuation funds and indeed will be fined by the government for not doing unpaid work for other private sector businesses. The least we could ask is that these funds are governed the best way possible by the best available directors. This might also create efficiency in the collection process that if achieved will free up the time of small business people to help them concentrate on job security and workplace safety. We must also ensure that no one can “self declare” as independent, that is scamming the system not providing good governance.”
“Plenty of times in the past people have said that governance of the largest organisations have been good and that some business are ‘too big to fail’. That is the wrong attitude, let’s remember Lehman Brothers, HIH, Babcock and Brown, Storm Financial, Onetel, the Pyramid Building Society and others that closed causing all sorts of problems including a global financial crisis. There are also examples of poor governance that created major problems for James Hardy, the MTAA, the LUCRF, Centro (now Federation Centres) and others that costs shareholders billions of dollars. Let’s get governance right before it is too late.”
See a previous article on this issue HERE.
Contact Peter Strong 0433 644 097
Superannuation and local economic development will be discussed at ”The MicroEconomic Challenge” to be held on 9 December 2015 in North Sydney. It’s Our Economy.