Submission to Treasury in response to the Financial System Inquiry's Final Report

In summary, it said:

• The Australian Prudential Regulation Authority’s (APRA’s) governance regulation should be revised so there is greater alignment with the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations.
• The director independence requirements that apply to other APRA-regulated entities should also apply to the boards of super funds and a broad description of “independent” should be adopted for directors of super funds.
• Given that directors on super fund boards are already owe duties to both their shareholders and their members, and they are required to have processes to deal with conflicts of interests, there is no sufficient cause for further regulation.
• We agree with the recommendations to increase and provide more stable funding to the Australian Securities and Investment Commission (ASIC) and APRA.
• Consideration should be given to how ASIC can better utilise its existing powers before additional or increased powers are granted.
• Directors need access to a broad-based defence that extends to the insolvent trading provisions under the Corporations Act.