This interim report focuses on governance arrangements for superannuation funds with reference to improving consumer experiences, choice and outcomes in Australia’s retirement system. The report provides findings on the independence and competency of superannuation trustee boards and governance standards and raises concerns about current governance arrangements. It provides seven recommendations. 

Committee recommendations

1. A requirement be introduced for superannuation trustee boards to have a majority of independent directors and an independent Chair.
2. Director competency rules be introduced which would mandate, at a minimum, relevant experience requirements that would apply to the chair of a superannuation trustee board.
3. Superannuation funds be required to maintain and make public a skills matrix for the purposes of conducting the fit and proper process for the appointment of directors.
4. The Australian Prudential Regulation Authority (APRA) be empowered with an adjudicable pathway to remove a trustee where an assessment is made that a material conflict of interest exists.
5. The Government introduce new mandatory reporting requirements on the APRA to report on Best Financial Interest Duty decisions of superannuation funds, to align with existing APRA standards.
6. The Government introduce legislation which would require all superannuation funds to maintain adequate funding, raised by the shareholders separate from members' assets and to meet the various costs to which they may be liable.
7. The Government work in an expedient fashion to develop mandatory insurance service standards for superannuation funds.