AIST Governance

AIST’s Governance Code

AIST’s Governance Code promotes continuous improvement in governance practices and aims to cement profit-to-member funds as the leading superannuation sector. 

The principles-based Code – which AIST funds are asked to report against – goes beyond current regulatory requirements and creates a new standard of best practice in Australia.

The profit-to-member super sector stands proudly by our record of achieving superior net returns on the retirement savings of our members. We have achieved this as a fundamental expression of our members-first culture, built on our equal representation governance structure.

Nevertheless, as our industry grows and changes, there is a collective need for us to review the way we govern ourselves, to preserve those good things that distinguish us and to further develop those areas where we can improve.

The Code exceeds any other industry code or principles in existence for superannuation funds. It was mandatory for AIST member funds to adopt the Code on 1 July 2018. Funds will report on their compliance with the 21 Code requirements for FY2019 by 30 September 2019.

As part of the Code’s implementation, AIST appointed a three-member Governance Code Monitoring Panel responsible for monitoring, engagement, reporting and other Code-related activities.

AIST funds were invited to take part in a 2018 voluntary reporting pilot to test the reporting approach and identify leading practice. Pilot funds reported a high level of compliance with the Code requirements. The Panel’s evaluation of the pilot reports is found in the March 2019 Voluntary Pilot Report on Compliance with the AIST Governance Code.

The Code Guidance document was developed as a useful resource to assist super funds in meeting the requirements of the Code.

The Guidance does not contain any additional requirements for funds to meet, however it provides suggestions on how funds can comply with the Code, as well as explanations of the twenty-one Code requirements.

AIST members wishing to discuss the Code or accompanying Guidance further can contact the Code Monitoring Panel at govcode@aist.asn.au.

Governance Code review

The AIST Governance Code will be reviewed on a three-yearly basis to ensure that it continues to meet its objectives of:

  • Improving governance in the profit-to-member super sector;
  • Ensuring that the culture of the profit-to-member concept is fully supported by governance structures; and
  • Improving accountability and transparency.

The first review is scheduled to take place in 2021 and AIST will conduct a formal consultation process with its member funds before any changes are made to the Code. The Governance Code Monitoring Panel will also make recommendations to the AIST board about adjustments to the Code.

If you would like to provide feedback about the Code, please contact the Code Monitoring Panel at govcode@aist.asn.au

Governance Code resources

AIST has developed resources to assist in Code reporting: