In a media release issued on 28 November 2013, the Assistant Treasurer, Senator Arthur Sinodinos, announced the release of a discussion paper entitled 'Better regulation and governance, enhanced transparency and improved competition in superannuation' for public consultation. The paper has been released to meet the Government's election commitments to improve governance, increase transparency of information provided by super funds and boost competition and transparency in the selection process of default super funds in modern awards.
The key issues raised in the paper are:
- How best to ensure an appropriate provision for independent directors on superannuation trustee boards. Issues canvassed include how 'independence' could be defined and what could constitute optimal board composition.
- How best to complete the outstanding aspects of the current regulatory regime, including:
- to what extent the choice product dashboard should reflect the MySuper product dashboard; and
- which model of portfolio holdings disclosure would best achieve an appropriate balance between improved transparency and compliance costs.
- The best way to improve transparency and competition in the employee default superannuation funds market.
The paper also seeks views on a possible deferral of the commencement date of the MySuper transparency measures beyond 1 July 2014.
The closing date for submissions is Wednesday, 12 February 2014.