List of recommendations

Recommendation 1

2.150The committee recommends that a requirement be introduced for superannuation trustee boards to have a majority of independent directors, and an independent Chair.

Recommendation 2

2.151The committee recommends that director competency rules be introduced, which would mandate, at a minimum, relevant experience requirements that would apply to the chair of a superannuation trustee board.

Recommendation 3

2.152The committee recommends that superannuation funds be required to maintain and make public a skills matrix for the purposes of conducting the Fit and Proper process for the appointment of directors.

Recommendation 4

2.156The committee recommends that the Australian Prudential Regulation Authority (APRA) be empowered with an adjudicable pathway to remove a trustee where an assessment is made that a material conflict of interest exists.

Recommendation 5

2.163The committee recommends the government introduce new mandatory reporting requirements on the Australian Prudential Regulation Authority (APRA) to report on Best Financial Interest Duty (BFID) decisions of super funds, to align with existing APRA standards.

Recommendation 6

2.169The committee recommends that the government introduce legislation which would require all superannuation funds to maintain adequate funding, raised by the shareholders separate from members' assets, to meet the various costs to which they may be liable, including fines for trustee misconduct and compensation payments resulting from misadministration. This funding should not be provided for, directly or indirectly, by members' funds and must come from the shareholders.

Recommendation 7

2.178The committee recommends that the government work in an expedient fashion to develop mandatory insurance service standards for superannuation funds. These standards should be developed in consultation with consumer advocates, regulators and industry stakeholders.