An updated prudential standard and guidance from APRA will require superannuation fund trustees to address tenure limits for directors, among other measures. In our January Super Update, we outline APRA’s changes to prudential standard SPS 510 Governance that will require trustees to have a governance framework in place that sets out policies and procedures to support effective governance practices.
The framework will need to address such matters as the nomination, appointment and removal of directors, voting rights and procedures and the management of conflicts and risks relating to fitness and propriety.
Importantly, if boards do not currently have a policy on tenure limits for directors, they will be required to do so. APRA considers that long tenure periods can affect an individual’s capacity to exercise independent judgement, stating it considers there would be limited circumstances in which maximum tenure limits exceeding 12 years would be appropriate.
Also in this Super Update, we look at the conditional change to the start date for fee and cost disclosure changes for PDSs and the Productivity Commission’s final report on the assessment of the competitiveness and efficiency of the superannuation system.
Our news in brief covers a new draft prudential practice guide on successor fund transfers and windups, as well as a consultation paper on MyRetirement products, an extension to the deferral of section 29QC commencement, extension of calculator relief and ATO draft law companion guidelines for the 2016 Budget changes, plus a look at the latest APRA publications.