Governance

Governance

AIST promotes the representative governance structure. Under this system, members of profit-to-member superannuation funds and their employers are provided with representation on Boards of Trustees. Read more

Select from our range of publications on this topic below:

 

3 Jun 2019 - Superannuation policy challenges for refreshed shadow ministry

The Australian Institute of Superannuation Trustees (AIST) welcomes the announcement of the Federal Opposition’s shadow cabinet ministry, amid a busy time for superannuation policy implementation. AIST CEO Eva Scheerlinck said AIST and its member funds were committed to working productively with both sides of government on policies that will improve the retirement outcomes of all Australians.

26 May 2019 - New Coalition government encouraged to commit to 12% super

The Australian Institute of Superannuation Trustees (AIST) congratulates Jane Hume on her appointment as Assistant Minister for Superannuation, Financial Services and Financial Technology under the Morrison Government.

21 May 2019 - New research highlights need for Govt agency to develop an online tool to compare super funds

A high level of confusion among members of poorly performing super funds points to the urgent need for a Government-sanctioned online tool to help Australians make more informed choices about their super savings, the Australian Institute of Superannuation Trustees said today.

15 May 2019 - How the two major parties stack up on super and retirement: pre-election score card

The score card highlights that Labor’s policies will have more positive impact on superannuation and the retirement outcomes for most working Australians.

3 May 2019 - Super savings gap ranges from 16% and 39% depending on where you live

New research has identified Western Australia and Queensland as being the states where the superannuation savings gender gap is at its worst.

1 May 2019 - Backdown on banning conflicted financial advice will leave consumers exposed

Thousands of consumers of financial products, including superannuation, will remain exposed to conflicted financial advice if proposed regulations on grandfathered conflicted remuneration get the green light, the Australian Institute of Superannuation Trustees has warned.

14 Apr 2019 - AIST research shows just how poor banking-owned super products are

The Fee and Performance Analysis 2019 by leading superannuation research house SuperRatings, commissioned by AIST, drills down into the differences between fees and returns across the many super products on offer and finds significant disparities between the fees charged by for-profit retail funds and profit-to-member funds.

10 Apr 2019 - Delay on consumer disclosure in super will hurt member retirement outcomes

The Australian Institute of Superannuation Trustees (AIST) has today warned that delays to consumer disclosure requirements will negatively impact on the retirement outcomes of millions of unsuspecting Australians. The warning follows this week’s announcement that the Australian Securities and Investments Commission (ASIC) is deferring key consumer disclosure requirements for non-default (Choice) super products for up to four years.

2 Apr 2019 - Modest changes to superannuation won’t help most Australians build their nest eggs

The changes to the rules for voluntary super contributions in the 2019 Federal Budget are good news for older members who can afford to make additional contributions to their superannuation savings, however they will have minimal impact on the retirement outcomes of most Australians, the Australian Institute of Superannuation Trustees (AIST) said tonight.

2 Apr 2019 - Time for a re-think on financial advice - AIST IFS Financial Advice In Super Symposium

Profit-to-member superannuation funds are well-placed to expand their role in providing quality, cost-effective financial advice, delegates attending a Financial Advice in Superannuation Symposium heard today. Speaking at the joint Australian Institute of Superannuation Trustees (AIST) and Industry Fund Services (IFS) symposium in Melbourne, IFS CEO Cath Bowtell noted it was a tumultuous time for financial advisers post-Royal Commission and that many retail advice providers were having to re-evaluate why they provided advice.

18 Mar 2019 - David Noonan named AIST’s Trustee of the Year

The Australian Institute of Superannuation Trustees (AIST) has announced Cbus director David Noonan as the recipient of the AIST Trustee of the Year Award at the Conference of Major Superannuation Funds (CMSF) held on the Gold Coast.

18 Mar 2019 - AIST welcomes new Board directors

The Australian Institute of Superannuation Trustees (AIST) has welcomed a new director to its Board following an election at its 2019 AGM held at AIST conference CMSF. Ros McLennan from Sunsuper was elected as a Trustee elected director and is the only new director to join the board, with David Smith, Naomi Edwards, Louise Du Pre-Alba and Suzette Thurman all received re-election.

14 Mar 2019 - AIST acknowledges Women in Super’s advocacy role on its 25th anniversary

The Australian Institute of Superannuation Trustees (AIST) has today congratulated Women in Super (WIS) on reaching its 25th anniversary. The women’s networking and advocacy organisation – of which AIST is a founding member - began as a breakfast event at AIST’s Conference of Major Superannuation Funds (CMSF) in 1994 to provide networking opportunities for women working in Australia’s $2.7 trillion super sector.

13 Mar 2019 - AIST CEO Eva Scheerlinck opening address at CMSF19

What we do as superannuation professionals, how we fulfil our fiduciary duties, service members, and protect and grow members’ retirement savings as stewards of their hard-earned capital has been in the spotlight this past year. In just the last two months, we’ve had to digest both the Hayne royal commission and the Productivity Commission final reports. Both reports carry recommendations that could have significant implications for our sector.

15 Feb 2019 - Amended legislation will keep more people in super system - AIST

The Australian Institute of Superannuation Trustees (AIST), has today welcomed the passage of the Protecting Your Super package, noting that important amendments would protect members from unintended consequences of the new legislation.

4 Feb 2019 - Regulators must act on Royal Commission recommendations to protect members in for-profit super funds

Today’s release of the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Banking Financial Services is an historic opportunity to restore the community’s trust in financial services and prioritise consumer best interests ahead of banking profits and executive bonuses, the Australian Institute of Superannuation Trustees said.

21 Jan 2019 - Profit-to-member funds embrace Insurance in Super Code

Over 96% of the members of profit-to-member super funds are now covered by the Insurance in Super Code of Practice, the Australian Institute of Superannuation Trustees (AIST) said today.

10 Jan 2019 - Productivity Commission gets it right on profit-to-member outperformance but misses mark on dealing with underperforming funds

The Australian Institute of Superannuation Trustees (AIST) has today welcomed the Productivity Commission finding hard evidence - for the third time in a year - that the best performing super funds are in the profit-to-member sector. Today’s report from the Productivity Commission, which includes an additional year of data, found that on average, for the 11 years to 2018, profit to member funds outperformed retail funds by around 2 per cent per year.

11 Dec 2018 - New law to improve compliance with superannuation obligations among small businessAIST welcomes longer transition period for fee and cost disclosure requirements

The Australian Institute of Superannuation Trustees (AIST) has welcomed today’s announcement from the Australian Securities and Investments Commission (ASIC) that the transition periods for key fee and cost disclosure requirements have been extended.

6 Dec 2018 - New law to improve compliance with superannuation obligations among small business

The Australian Institute of Superannuation Trustees (AIST) has today welcomed the passage of legislation to help ensure small businesses comply with their legal obligation to pay superannuation for their workers.

5 Dec 2018 - AIST Awards celebrate achievements of $1.3 trillion profit-to-member super sector

A focus on targeted, personalised communication about superannuation was a key theme among winning campaigns at last night’s Australian Institute of Superannuation Trustees (AIST) Awards for Excellence.

3 Dec 2018 - New research reveals how consumer protection in superannuation has been watered down

Successive governments have provided dozens of regulatory carve-outs and concessions to products, benefitting banks and other retail super providers over more than a decade, according to a new research report released today by the Australian Institute of Superannuation Trustees (AIST).

20 Nov 2018 - Domestic violence measures welcome but Government’s economic package falls short on improving retirement outcomes for women

The Government’s newly announced Women’s Economic Security Statement was a missed opportunity to improve retirement outcomes for women, said the Australian Institute of Superannuation Trustees (AIST) today.

14 Nov 2018 - Welcome move to ensure super funds members who need insurance don’t lose it

The Australian Institute of Superannuation Trustees (AIST) has welcomed today’s announcement from the Opposition that it will move to amend key measures in the insurance in superannuation package now before Parliament.

7 Nov 2018 - 12% super needed to deliver a dignified retirement for all working Australians

Moving to 12% superannuation is vital to ensure that all working Australians achieve a dignified standard of living in retirement, the Australian Institute of Superannuation Trustees (AIST) said today.

31 Oct 2018 - AIST member funds are AFCA-ready

The Australian Institute of Superannuation Trustees (AIST) has today welcomed the launch of the new financial complaints body, the Australian Financial Complaints Authority (AFCA). Designed to be a one-stop shop for financial complaint resolution, AFCA represents the amalgamation of the Super Complaints Tribunal (SCT), the Financial Ombudsman Service (FOS) and Credit and Investments Ombudsman (CIO).

25 Oct 2018 - AIST welcomes end to decades of unfairness for WA de facto couples on super splitting

The Australian Institute of Superannuation Trustees (AIST) has welcomed an announcement by the Federal Attorney-General today that separated de facto couples in Western Australia will soon be able to achieve a fair split of their superannuation assets in property settlements.

19 Sep 2018 - Labor’s super proposals an important step to improving retirement outcomes

The Australian Institute of Superannuation Trustees (AIST) welcomes Labor’s pre-election commitment that it will pay superannuation on government paid parental leave and scrap the minimum $450 monthly pay threshold for super payments.

17 Sep 2018 - Super’s next decade – where would you rather be?

Australian workers who invest their super in funds outside the high performing MySuper sector could be as much as $52.5 billion worse off in a decade’s time, according to new research from Rice Warner.

6 Sep 2018 - Scrapping pension age increase a win for older workers: AIST

The Australian institute of Superannuation Trustees (AIST) has welcomed today’s announcement by Prime Minister, Scott Morrison, that the Government will not proceed with its policy to raise the access age for the Age Pension to 70 years.

5 Sep 2018 - AIST CEO Eva Scheerlinck opening address at ASI 2018

Profit-to-member super has been in a defensive position for longer than we all care to remember. We have had to defend against attacks on the compulsory nature of superannuation by those who would rather see full wages freedom as opposed to a compulsory retirement savings system. We have had to defend our sector’s governance structure and the role of employer and employee representation on equal representation boards.

29 Aug 2018 - AFR opinion piece (Aug 2018): Retail trustees, with their independent directors, were unable to protect members from fee gouging and other misconduct. They should be barred from MySuper

The Government’s fixation with industry super funds and its desire to break up the role of union and employer groups on industry fund boards looks like it has been finally laid to rest. In pursing industry funds relentlessly, the Government took its eye off the banks and the inherent conflicts of interest at the heart of their operations.

20 Aug 2018 - Government’s rejection of key Senate recommendations a setback for the retirement outcomes of Australian working women

The Turnbull Government’s disregard for key Senate recommendations on reforming super was disappointing and a setback for the retirement outcomes of Australian women, the Australian Institute of Superannuation Trustees said today.

6 Aug 2018 - AIST Statement on the Royal Commission

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry begins its Round Five hearings today in Melbourne. The focus of Round Five is superannuation, with the hearings scheduled to run for two weeks. Some AIST member funds have been given notice to give evidence and answer questions in these hearings.

24 Jul 2018 - AIST welcomes report on fee and cost disclosure in superannuation

The Australian Institute of Superannuation Trustees (AIST) has today welcomed the release of a comprehensive report into the fee and cost disclosure regime for superannuation funds. AIST CEO Eva Scheerlinck said the report – prepared by independent expert, Darren McShane at the request of the Australian Securities and Investments Commission (ASIC) – vindicated many of AIST’s concerns with the existing fee and cost disclosure regime for superannuation funds.

29 May 2018 - Consumer interests best served by existing industrial-based default super system: AIST responds to Productivity Commission

The Australian Institute of Superannuation Trustees (AIST) today reiterated its support for an industrial-based default fund selection process, noting this model had a strong track record of protecting consumer interests and delivering superior returns.

16 May 2018 - Consumer interests best served by existing industrial-based default super system: AIST responds to Productivity CommissionFSC and AIST team up to help fund managers tackle new operational due diligence

The Financial Services Council (FSC) and the Australian Institute of Superannuation Trustees (AIST) have today released further guidance tools to help fund managers prepare their operational due diligence (ODD) reports for the superannuation industry. Both industry bodies are promoting a collective and cost-effective ODD framework to help super funds meet their regulatory obligations to closely monitor and assess the management of operational risk controls by investment fund managers.

8 May 2018 - Welcome measures to tackle lost super but super gender gap ignored AIST Budget response

The 2018/19 Federal Budget delivered welcome measures for the efficiency of the super system, but disappointedly did little to improve retirement outcomes for women, the Australian Institute of Superannuation Trustees (AIST) said today.

11 Apr 2018 - AIST announces new president

The Australian Institute of Superannuation Trustees (AIST) has today announced the appointment of Catherine Bolger as its new President. AIST CEO Eva Scheerlinck said the AIST board was delighted to appoint Ms Bolger, who has been a director of AIST since 2016, and has served as a director on a range industry funds and related boards for the last 14 years.

19 Mar 2018 - Research shows widespread concern about housing affordability and retirement

New research on attitudes to property investment and saving for retirement has revealed widespread concern over affordable housing and support from a majority of non-property investors for changes to negative gearing.

14 Mar 2018 - Opening address - AIST CEO Eva Scheerlinck at the 2018 Conference of Major Super Funds, Brisbane

"We are set for another big year in our industry this year. Assets under management continue to grow, markets are volatile and unpredictable, and there is a spotlight on our industry’s conduct and expenditure, through the lens of a Royal Commission ..."

14 Mar 2018 - AIST announces Angela Emslie as Trustee of the Year

AIST has today announced Angela Emslie as the recipient of the AIST Trustee of the Year Award at the Conference of Major Superannuation Funds in Brisbane.

27 Oct 2017 - AIST’s Karen Volpato wins 2017 Woman of the Year Award

The Australian Institute of Superannuation Trustees (AIST) congratulates our senior policy advisor, Karen Volpato, for winning the 2017 Woman of the Year Award announced last night in Sydney at the 5th annual Money Management & Super Review Women in Financial Services Awards.

10 Oct 2017 - Eva Scheerlinck opening address on Superannuation Laws Amendment

Opening statement by Eva Scheerlinck, Chief Executive Officer, Australian Institute of Superannuation Trustees to Senate Economics Legislation Committee on Superannuation Laws Amendment (Strengthening Trustee Arrangements) Bill 2017 and Improving Accountability and Member Outcomes in Superannuation Measures No. 1 & No. 2 Bill 2017

9 Oct 2017 - Equal representation delivers best outcomes for super fund members: AIST

AIST has recommended that the Senate reject a push by the Government to mandate a governance model for super funds.

23 Mar 2017 - AIST announces 2017 Board

AIST has today announced its 2017 Board.

23 Mar 2017 - AIST appoints CEO

Eva Scheerlinck has been appointed as AIST’s new Chief Executive Officer, effective immediately.

22 Mar 2017 - AIST announces Cate Wood as Trustee of the Year

AIST has today announced Cate Wood as the recipient of the AIST Trustee of the Year Award at the Conference of Major Superannuation Funds on the Gold Coast.

1 Mar 2017 - AIST Acting CEO appointed

The AIST board today announced the appointment of Eva Scheerlinck as acting CEO.

16 Feb 2017 - New governance code keeps superannuation members’ interests first

AIST has developed a new governance code that reinforces the importance of member representation on the boards of superannuation funds and aims to keep profit-to-member funds positioned at the leading edge of governance practices.

16 Feb 2017 - Fraser Review: Member-first ethos central to success of not-for-profit super funds

Former Reserve Bank Governor and Treasury Secretary, Bernie Fraser, has delivered his report into not-for-profit super fund governance.

16 Dec 2016 - AIST CEO Tom Garcia to step down

AIST today announced the resignation of its chief executive officer, Tom Garcia.

1 Dec 2016 - Super industry takes collective stand on domestic violence

AIST has signed the Women in Super Charter Addressing Domestic Violence.

28 Nov 2016 - AIST Awards recognise the importance of connecting to members

Check out the winners from the 2016 AIST Awards for Excellence.

22 Aug 2016 - AIST launch Reconciliation Action Plan (RAP)

AIST has launched a Reconciliation Action Plan (RAP) in line with its commitment to reconciliation with Aboriginal and Torres Strait Islander peoples.

17 Mar 2016 - 2016 AIST Board announced

AIST has today announced board changes for 2016 – including the resignation of AIST President Angela Emslie, who has served on the board of AIST, and before that CMSF, for a total of 19 years

18 Dec 2015 - The Fraser Governance Review

AIST and ISA have asked Bernie Fraser to lead a Review of governance arrangements in respect of not-for-profit superannuation funds, and to propose a best practice Governance Code for such funds.

2 Dec 2015 - First class returns and first class governance

AIST and ISA will commission a review by former RBA Governor and Treasury Secretary Bernie Fraser to lead the development of a best practice governance code of conduct for not-for-profit super funds by 30 April 2016.

15 Oct 2015 - Proposed governance changes run counter to international best practice

Proposed changes to the governance framework of not-for-profit superannuation funds run counter to international best practice in pension fund governance, The Australian Institute of Superannuation Trustees (AIST) said today.

16 Sep 2015 - Proposed changes to boards of super funds will dilute consumer voice

AIST is urging all parliamentarians to reject proposed legislation to change the composition of not-for-profit superannuation boards.

20 Aug 2015 - No evidence to support Government’s superannuation governance changes

AIST will continue to oppose unnecessary changes to the boards of not-for-profit superannuation funds.

23 Jul 2015 - Government’s proposed changes to super fund boards pose risks without any demonstrable benefits for members

The Government’s proposed changes to the board composition of super funds were risky and not supported by evidence, AIST said today.

26 Jun 2015 - Government changes to super fund boards not supported by evidence - AIST

The Government’s proposed changes to the governance arrangements of not-for-profit boards announced today are not supported by any hard evidence, AIST said today.

19 Mar 2015 - Bob Henricks & Maree O’Halloran named as joint AIST Trustee of the Year

Bob Henricks & Maree O’Halloran are named as joint AIST Trustee of the Year

18 Mar 2015 - AIST announces 2015 board

The Australian Institute of Superannuation Trustees (AIST) has announced its 2015 board which includes the addition of two new board members and the re-election of four others at the Annual General Meeting in the Gold Coast this morning.

18 Feb 2015 - Superannuation industry loses one of its greats

It is with great sadness, that AIST and WIS announce the passing of Mavis Robertson AM.

21 Nov 2014 - AIST Awards celebrate achievements by not-for-profit superannuation funds

The AIST Awards for Excellence were announced last night at Melbourne’s RACV City Club, with a number of outstanding achievements celebrated.

26 Aug 2014 - Renovate the house don’t pull it down – AIST responds to the Financial System Inquiry

The Australian Institute of Superannuation Trustees (AIST) said today Australia’s $1.85 trillion superannuation system is on track to deliver further cost savings and value to members with the recently launched MySuper having already led to significant fee reductions*.

16 Jul 2014 - AIST to provide comprehensive response to the Financial Systems Inquiry interim report

The Australian Institute of Superannuation Trustees (AIST) said today it would begin preparing a comprehensive response on key superannuation issues raised in the Financial System Inquiry’s interim report. AIST CEO Tom Garcia said AIST welcomed the Inquiry’s support of a robust regulatory framework for superannuation, its recognition of superannuation’s important role in the economy, and the need to develop clearer objectives for the superannuation system.

28 Apr 2014 - AIST announces new president

The Australian Institute of Superannuation Trustees (AIST) has today announced the appointment of Angela Emslie as its new President. AIST CEO Tom Garcia said the AIST board was delighted to appoint Ms Emslie, who has been a director of AIST since 2007, and is currently Chair of HESTA and a Director of Frontier Advisors.

27 Mar 2014 - Elana Rubin awarded the inaugural AIST Trustee Lifetime Achievement Award

The inaugural AIST Trustee Lifetime Achievement Award has been awarded to Elana Rubin, who recently retired as the chair of Australian Super after more than 20 years as a trustee director of industry super funds.

25 Mar 2014 - Brumby_takes out trustee of the year award

The Australian Institute of Superannuation Trustees (AIST) has announced John Brumby as Trustee of the Year at their Conference of Major Superannuation Funds (CMSF) today. Mr Brumby, who is the chair of MTAA Super, joined the fund in 2011 after serving 25 years in state politics.

24 Mar 2014 - AIST announces 2014 board

The Australian Institute of Superannuation Trustees (AIST) has announced the addition of four new board members at the Annual General Meeting in the Gold Coast this morning.

17 Feb 2014 - Change has never been something that the not-for-profit superannuation sector has shied away from – quite the opposite.

Click here to read Tom's op ed piece published in The Age.

29 May 2019 - APRA member outcomes consultation

AIST submits that APRA’s proposed changes to Prudential Standard SPS 515 do not properly align it with the recent member outcomes assessment legislation. The promotion of the financial interests of members required by law must be reflected in the prudential standards, especially by giving primary consideration to the long-term net returns that deliver optimal retirement incomes to members. AIST proposes amendments and calls for the development industry benchmarks to support the assessment process.

24 May 2019 - Kinship structures and superannuation death benefits

AIST is supportive of broadening the definition of dependency to recognise cultural adoption and reflect First Australian kinship structures. We urge Treasury to consult directly with the Aboriginal and Torres Strait Islander community to understand the issues they face in relation to superannuation and the best steps to address them.

12 Apr 2019 - Enforceability of financial services industry codes

AIST has responded to a Treasury paper on the Financial Services Royal Commission recommendation about the enforceability of financial services industry codes. We supported industry codes as a means of lifting standards or for assessing if community expectations and members best interests are being met. Codes may contain both enforceable and aspirational provisions and there should be a clear and uniform approach to the identification and treatment of each type of provision. Code enforcement should generally be the responsibility of an independent body(such as a regulator) rather than a code owner.

22 Mar 2019 - Ending grandfathered conflicted remuneration for advisers

AIST supports this exposure draft legislation which will see the end of grandfathered conflicted remuneration on financial products. We believe that the 2021 implementation date is too late, and this measure must be implemented as soon as possible. In the meantime, details of commissions must immediately be added to fee disclosure statements, and in the absence of compelling reasons for their continued exemption, risk insurance products must be included in this measure.

9 Jan 2019 - FSC Consultation Draft – Life Insurance Code of Practice

AIST is pleased to provide feedback on the Financial Services Council’s review of the Life Insurance Code of Practice Consultation Draft. AIST provided comments on the original iteration of the life code and supports efforts for its continual improvement.

26 Oct 2018 - Submission to Financial Services Royal Commission – Interim report

This submission is AIST’s fourth response to the Royal Commission.This submission responds directly to the interim report released by the Royal Commission.

24 Oct 2018 - Submission to Financial Services Royal Commission – Round 6 Policy Issues

This submission is AIST’s third response to the Royal Commission. This submission responds directly to the submissions made by Counsel Assisting to the Commission at the close of the hearings relating specifically to insurance in round 6.

26 Sep 2018 - APRA post implementation review of prudential standards

There are several reviews either in progress or recently completed that may affect the ability of APRA to provide a full review of the framework at this point in time. AIST recommends that there be a further post implementation review to consider the final report of the Royal Commission into Banking, Superannuation and Financial Services, as well as Productivity Commission reports, other recent APRA reviews, and initial industry feedback.

21 Sep 2018 - Submission to Financial Services Royal Commission – Round 5 Policy Issues

This submission is AIST’s second response to the Royal Commission. This submission responds directly to the submissions made by Counsel Assisting to the Commission at the close of the hearings relating specifically to superannuation in round 5.

27 Jul 2018 - First Submission to Financial Services Royal Commission

This submission is AIST’s first response to the Royal Commission.

13 Jul 2018 - Response to Productivity Commission Draft Report

AIST welcomes the opportunity to respond to this draft report. AIST agrees that there is no place for long term underperforming funds in the default space. However, we believe enhancing the current Fair Work Commission default selection process and increased APRA scrutiny are the most efficient, appropriate, and importantly the least disruptive ways, to address this issue. The Productivity Commission should address the biggest problem of underperforming choice funds in the retail sector, which is a drag on the efficiency of the super sector. The ‘best in show’ default proposal does not address this. Multiple accounts, balance erosion by fees and underperforming funds are serious issues, which are already being addressed by the APRA Outcomes Assessment Test, new ATO services. This should be enhanced by legislation supporting direct fund-to-fund consolidation of lost super. The Insurance Code should be implemented and be the focus for lifting standards. Regulator benchmarking of fees and returns should be used to assess if funds are delivering fair value and address under-performing funds.

15 Jun 2018 - ASX Corporate Governance Principles & Recommendations

AIST supports the proposed amendments to the ASX Corporate Governance Principles & Recommendations. The ASX principles play an important role in establishing and maintaining high governance standards within ASX listed companies and we believe the proposals will help improve decision making by those companies.

20 Apr 2018 - APRA New Data Collection Consultation

AIST submits that implementation should be integrated with a review of existing documentation and forms. It should also form part of a whole of government approach to financial services reporting; this approach should be articulated by government as a priority. We emphasise the importance of appropriate communication during transition and implementation.

6 Apr 2018 - APRA member outcomes consultation

AIST supports the proposals which have an ongoing focus on improving member outcomes. AIST notes that there are three key issues which are fundamental and need addressing, being the difficulty of meaningful benchmarking, the existence of various disclosure gaps and clarity needed in relation to the interaction with various pending legislative amendments. AIST believes that the outcomes criteria needs to give primacy of focus to long-term net returns backed with the provision of quality outcomes by RSE licensees, whilst accommodating tactical investment options such as cash.

3 Nov 2017 - Treasury Laws Amendment (Whistleblowers) Bill 2017

AIST supports the measures in the exposure draft legislation to create a consolidated whistleblower protection framework. The development of a new framework should be accompanied by an examination of corporate misconduct within Australia because a robust whistleblower framework on its own cannot prevent misconduct. Other factors such as poor workplace culture and poor leadership can increase the likelihood of misconduct.

29 Sep 2017 - Improving accountability and member outcomes in superannuation measures No.1

AIST recommends that the outcomes assessment outlined in the Bill be modified in order to reflect the importance of net returns above any other criteria in determining the appropriateness of MySuper product offerings and that the assessment should also apply to Choice products. AIST also notes that it is important for funds to have the flexibility to choose the best method to conduct Annual Members’ Meetings, and that APRA’s existing regulatory framework should be reviewed before expanding its powers.

29 Sep 2017 - Strengthening Trustee Arrangements Bill 2017

AIST is strongly opposed to all the measures in the Bill, and believes it is inappropriate to prescribe a governance model to apply to all funds absent comprehensive empirical evidence that the current system is failing. The preservation of the equal representation model is paramount for a number of reasons, including investment outperformance.

26 Jul 2017 - Strengthening ASIC’s licensing powers

AIST supports measures which ensure that ASIC has the appropriate powers to ensure that entities applying for Australian Financial Services Licenses (AFSLs) are fit and proper licensees. AIST supported this recommendation from the Financial System Inquiry. AIST's submission indicates our full support for all of the positions proposed in the consultation paper. We have, however, chosen not to respond to the questions contained in the paper.

9 Jul 2017 - Framework for Comprehensive Income Products for Retirement

AIST recommends that a post retirement framework be required to be developed by trustees. This would assist trustees in developing a preferred retirement income strategy for their members, in line with members’ needs and best interests. To strengthen putting the best interests of members first, current gaps in the Choice disclosure space require attention as a priority. Given the importance of post-retirement issues, AIST calls for a working group be established to review key post-retirement issues as well as the establishment of a holistic review of retirement incomes.

10 Feb 2017 - Whistleblower protections

The Australian Whistleblower protection framework is in need of significant reform because it fails to adequately protect whistleblowers. Changes to the law are necessary to ensure that those who disclose misconduct are not adversely affected as a result of making a disclosure and are able to seek redress in the event that they are victimised or suffer detriment.

27 Jan 2017 - External Dispute Resolution: Response to Interim Report

AIST strongly opposes the draft recommendation to transition the Superannuation Complaints Tribunal to an industry ombudsman scheme because it will detrimentally affect consumers and superannuation funds. The statutory nature of the tribunal provides consumer protections that cannot be replicated within an ombudsman model.

19 Jan 2017 - Pre-Budget Submission 2017

AIST welcomes the opportunity to present our Pre-Budget submission for 2017-18. We do not endorse superannuation being used for deficit reduction to a greater extent than other industry segments or for untested superannuation policy announcements to be made on Budget night. The current package of superannuation reforms should be implemented and allowed to settle, and KPIs should be developed and used to assess system performance against the primary and subsidiary objectives by an independent, publicly-funded body. AIST recommends a range of changes to improve superannuation for consideration.

7 Oct 2016 - External Dispute Resolution Framework

The Government’s review of the financial system’s external dispute resolution framework must carefully consider the needs of consumers. Due to the growth of the superannuation sector the dispute resolution framework must continue to be well equipped to deal with consumer demands and AIST believes that there is scope for improvement. AIST is not opposed to the establishment of a triage service, or a single disputes handling body.

16 Sep 2016 - Superannuation reform package – Objective of superannuation

In conjunction with other industry associations, AIST seeks that the Government consult further prior to introduction of the Bill. We seek the amendment of the primary objective to include reference to providing an adequate income that delivers a comfortable retirement. AIST also seeks an additional subsidiary objective of increasing national savings; recognition of insurance as key part of the ‘sole purpose test’; Parliamentary committee review of statements of compatibility; and the development of tools to assess compatibility.

13 Sep 2016 - Submission on Productivity Commission draft report on superannuation efficiency and competitiveness

AIST welcomes the Productivity Commission's draft report and its focus on developing appropriate evidence-based measures to assess the efficiency and competitiveness of the system

22 Apr 2016 - Productivity Commission inquiry into superannuation efficiency and competitiveness

10 Feb 2016 - 2016-17 Pre-Budget Submission

AIST does not support the Budget being used to implement changes to the superannuation tax environment without considering the outcomes of the tax inquiry process and retirement incomes review, as well as the setting of objectives for the superannuation system. We recommend that these are finalised prior to any hasty policy changes driven by fiscal short-termism. However, we continue to support Budget action on a number of specific measures to improve fairness and efficiency of the system.

26 Oct 2015 - Reforms to Superannuation Governance Prudential Framework

APRA has proposed draft prudential standards and practice guides designed to support the Superannuation Legislation Amendment (Trustee Governance) Bill 2015 which is currently before Parliament. AIST does not support the changes, and is unconvinced of any resulting benefit to members. AIST would also support an approach which is less prescriptive and more principles-focussed in its approach.

14 Oct 2015 - Senate Economics: Trustee Governance Bill inquiry

The Superannuation Legislation Amendment (Trustee Governance) Bill 2015, currently before Parliament, proposes to impose up to one third independent directors on trustee boards.This submission is a response to an inquiry into the Bill at the Senate Economics Legislation Committee. AIST opposes this Bill for a number of reasons: We support flexibility rather than quotas, the international recognition of the equal representation model, real conflicts are ignored, existing regulator powers and the cost of disruption to business and members. Download the full submission here.

31 Jul 2015 - Reforms to superannuation governance – APRA

The Government’s proposed changes to trustee board governance include a proposal to mandate one third directors being independent. AIST does not support this proposed change. Instead, AIST supports principles-based regulation that supports flexibility around an industry with distinctly different sectors. We have recommended several changes, including defining the term ‘independent’ in legislation and not providing APRA with the power to make determinations on an individual’s independence.

23 Jul 2015 - Reforms to superannuation governance

AIST is pleased to respond to this draft legislation and regulations from Treasury, which will introduce a requirement for funds to have a minimum of one third independent directors, and an independent chair. AIST notes the costs involved with this measure, and notes that there is no substantive reason to make changes which arguably will not address real and demonstrated conflicts in board structures. AIST also points out that the changes are being made with some haste that may pose risks, including those to the best interests of members, as well as breaches of the rule of law.

31 Mar 2015 - AIST releases submission to final FSI report

AIST’s response to the Government on the Final Report of the Financial System Inquiry (FSI). The FSI Final Report makes a number of recommendations about superannuation and canvasses a range of policy options.

9 Feb 2015 - 2015-16 Pre-Budget submission

AIST’s pre-budget submission discusses a range of measures that we believe are in the public interest. Issues raised in our submission include improving the fairness of superannuation, reviewing the rules associated with the age of superannuation fund members and the fairness of existing arrangements for employees, as well as the transition to 12% SG. We also raised the question of inconsistencies associated with the financial supervisory levies and recommended an increase in funding to Indigenous identification schemes.

5 Dec 2014 - Scrutiny of financial advice enquiry

AIST welcomes this Senate Economics inquiry into the scrutiny of financial advice. AIST recommends higher education standards, ongoing professional development and independently regulated codes of conduct combined with better resourcing of regulators. Penalties for poor advice should be reviewed to ensure they better repair customer impacts. In light of recent scandals and the lack of consistency, consumers deserve better.

26 Aug 2014 - Response to Financial System Inquiry Interim Report

The Financial System Inquiry, chaired by David Murray, has released its interim findings in to the financial system of Australia. This is AIST's response to these findings.

31 Mar 2014 - Initial submission to the Financial System Inquiry

The Financial System Inquiry, chaired by David Murray AO, is charged with examining how the financial system could be positioned to best meet Australia's evolving needs and support Australia's economic growth. AIST’s initial submission examines regulation, the issues of adequacy, sustainability and longevity, diversity and governance, systemic risk, ensuring the system delivers and consideration of post-retirement solutions.

13 Feb 2014 - Equal representation is critical to delivering best member outcomes in superannuation

Equal representation of member and employer representatives on the boards of not-for-profit superannuation funds is critical to delivering the best retirement outcomes for members, The Australian Institute of Superannuation Trustees (AIST) said today.

12 Feb 2014 - Discussion paper – Regulation, governance, transparency and competition in the superannuation industry

The Assistant Treasurer released this discussion paper in November 2013, the purpose of which is to seek feedback on governance and transparency issues contained in the Government's superannuation election commitments. The paper also provides an opportunity for consultation on opening up competition and increasing transparency in relation to default employee superannuation fund contributions.

7 Feb 2014 - Fair Work Commission 2014 review of default fund terms

Section 156A of the Fair Work Act 2009 requires the Fair Work Commission to conduct a four yearly review of the default fund terms of modern awards starting as soon as practicable after, in effect, 1 January 2014. This is AIST's submission to the current review.

4 Dec 2012 - Joint Submission: ASIC: CP 191 – FOFA – Codes of Conduct

AIST and ISN welcome the opportunity to make a submission on Consultation Paper 191: Approval of codes of conduct for exemption from the opt in requirement (CP 191). The opt-in requirements were most contentious aspect of the FOFA reforms, introducing requirements to ensure that advisers did not convert from conflicted forms of remuneration to ongoing fee structures where the clients receive little or no service. This discussion paper examines requirements for codes of conduct that obviate the opt-in requirement.

21 May 2019 - Essential Research – Understanding retail fund members

AIST commission Essential Media to conduct research into the decision-making process of Australians who are in retail for-profit funds. With a growing body of evidence pointing to the persistent underperformance of many retail funds, particularly those in the non-default ‘choice’ sector, AIST was keen to explore how people end up in these funds and whether these members are aware of their fund’s performance. The research findings – from both qualitative focus group sessions and a quantitative online survey – suggest a large cohort of Australians are misinformed about how their super fund is performing and what type of fund they are in. AIST is calling on the Government and industry regulators to develop an easy-to-use online super comparator tool to help consumers make more informed decisions about their super.

10 Apr 2019 - Fee and Performance Analysis

AIST has commissioned SuperRatings to examine the differences in fees and returns of profit-to-member funds compared with for-profit funds run mainly by banks. The report shows that the median profit-to-member MySuper has delivered 6.47% pa to members over 3 years – well in excess of the 4.94% per annum by bank and retail-owned super funds – and at substantially lower fees. In the Choice sector, bank and retail-owned funds charge much higher fees than profit-to member funds and generally underperform over both the short and long term.

23 Nov 2018 - Regulatory carve out report

This paper reviews the evidence on the implications of the gaps and exemptions for the governance and performance outcomes of the Australian superannuation industry and focuses upon the causes of poor member outcomes. The remedy of a new regulatory architecture for the superannuation sector and refocusing of institutions and products upon the long-term interests of beneficiaries is compelling.

21 Nov 2017 - Gender diversity in profit-to-member super funds

The AIST Gender Diversity report reveals that many superannuation funds are taking positive steps towards achieving gender diversity and implementing changes to ensure each gender is equally supported, and able to thrive within the organisation. Participating funds generally had better processes, policies, strategies and procedures in place to support gender diversity in the workplace when compared to organisations in the finance sector.

15 Mar 2015 - AIST Mercer Super Tracker: How the super system stacks up on fairness, adequacy, and sustainability

AIST and Mercer have developed the Super Tracker to assess the progress of Australia’s retirement income system based on the available evidence and to make important contributions to the discussion about the system’s ongoing development including the fairness of taxation arrangements. This paper focuses on how the Australian super system stacks up on fairness, adequacy, and sustainability.

15 Sep 2014 - International trends and how Australia stacks up

The growing significance of superannuation - both to the members it serves and the Australian economy - underscores the importance of best practice governance of superannuation funds. Strong trustee governance practices reduce the potential risks faced by a superannuation fund, with flow on effects for the fund's stability and sustainability. Good performance and sustainability are fundamental to optimising members' retirement benefits..

15 Sep 2014 - (Summary) International trends and how Australia stacks up

The growing significance of superannuation - both to the members it serves and the Australian economy - underscores the importance of best practice governance of superannuation funds. Strong trustee governance practices reduce the potential risks faced by a superannuation fund, with flow on effects for the fund's stability and sustainability. Good performance and sustainability are fundamental to optimising members' retirement benefits..

15 Jul 2014 - Navigating the new MySuper landscape

AIST commissioned RiceWarner to examine the extent MySuper has delivered on its promise of improved retirement incomes, the characteristics of common MySuper investment solutions, the differences and similarities between MySuper products and "lookalike" products, and emerging trends in the evolution of MySuper products.