The AICD has lodged a submission on the policy questions raised by Counsel Assisting in relation to the Round 5 Financial Services Royal Commission hearings on superannuation.
While superannuation has been a pillar of our retirement income system and contributed significantly to investment in the Australian economy, it is critical that robust governance practices that support sound decision-making in the best interest of members are in place and operating effectively across the sector.
The AICD submission supports:
- a stronger focus on board composition, particularly in relation to directors’ knowledge, skills and experience;
- the application of civil liability to breaches of the duty to act in the best interests of members, as well as targeted measures to address conflicts of interest in the industry; and
- strong, effective, and proactive enforcement of existing laws by all regulators.
Close regulatory oversight is particularly important in the context of superannuation. To this end, we support a clearer articulation of the roles of ASIC and APRA so as to clarify respective mandates and eliminate any unnecessary overlap (including identifying one regulator as the primary ‘conduct’ regulator), periodic independent assessment of the performance of the regulators, and increased funding to ensure the appropriate action can be taken.
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