C1 Superannuation Governance
Leah Fricke Pauline Vamos
20112011ANNUANNU
AL AL
CONFERENCECONFERENCE
20112011ANNUANNU
AL AL
CONFERENCECONFERENCE
28TH ANNUAL
CONFERENCE
2011
28TH ANNUAL
CONFERENCE
2011
Superannuation Governance
• Pauline Vamos• CEO ASFA
What is Superannuation Governance
• Fiduciary responsibility
• Acting in the members’ best interest
• Higher than ASX governance?
• Investment governance
Unique issues
• Equity between members
• Sole purpose test
• Cross sub-sidisation
• Different sector models have different issues
General Governance
• Prudent person to prudent business person
• Size, tenure, and diversity
• Fit and Proper
• Conflicts – multiple arrangements
• Independence-voting
Investment Governance
• investment strategy – portability, liquidity, long term (peer pressure)
• Default, target date and choice portfolios • Oversight of fund managers – cost and after
tax • In-house investing – new governance model • ESG and UNPRI• Post retirement – liability investing
Increasing Challenges
• MySuper-design, costing, transition
• Scale and sustainability as a fund
• Delivery of advice
• Insurance – tailoring design
Even more challenges
• Superstream – auto consolidation
• APRA Standards including data collection • Operational risk reserves
• Competition
• Mergers - DTAs
Trustee of the future
• Global pension fiduciary
• Business and investment savvy – influence on listed companies
• Many fiduciaries' outside pension industry
• Professional trustees?
