Stronger governance critical for better retirement outcomes

BT Financial Group (BTFG) has welcomed the government’s announcement that it will implement measures to increase the independence of superannuation fund boards.

“The superannuation pool has grown to over $2 trillion, and the industry manages the majority of these retirement savings on behalf of millions of Australians so they can have a dignified retirement,” said Melinda Howes, General Manager, Superannuation, BTFG.

“Good governance provides members with greater confidence that board decisions are made in their best interest. As a compulsory industry, we have an obligation to ensure that superannuation funds adhere to the highest standards of governance, and attract the best and brightest talent to their boards.”

“Increasing the number of independent trustees will create new competition for positions, broadening the talent pool from which directors are drawn, and ultimately delivering better outcomes to fund members.”

Ms Howes added BTFG had long been a supporter of greater transparency and disclosure for directors, particularly when it comes to conflicts of interest.

“The interests of the fund member should be the primary concern for the trustee.”

“We look forward to seeing further detail on the proposals announced today and working with the Government on finalising their implementation.”

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Note to editors
Since March 2012, BT has adopted a best practice governance model for its superannuation trustee boards including a majority of independent directors, and an independent chair.