How Directors are appointed
Superannuation funds must be licensed to carry on business in Australia.
The licence is issued by the Australian Prudential Regulation Authority (APRA) and sets out a number of compulsory operating standards including a “fit and proper” standard. The fit and proper standard is designed to ensure that the interests of superannuation members and beneficiaries are managed and overseen by competent, honest and trustworthy people. To ensure ongoing compliance with this licensing obligation it has been decided that all future employer and member representative directors will be appointed by the Board.
Since 1 July 2009 all four employer directors have been appointed by the Board on the nomination of the Municipal Association Victoria (two directors), Victorian Water Industry Association (one director), and Victorian Employers’ Chamber of Commerce and Industry (one director).
Since 1 July 2009 all four member representative directors have been appointed by the Board on the nomination of the Australian Services Union (Victorian Branch).
The Board will only appoint those nominated individuals who meet the required standards, particularly those who can demonstrate:
- propriety (including character, competence, diligence, experience, honesty, integrity and judgement);
- educational and technical qualifications;
- knowledge and skills relevant to the duties and responsibilities of a director of a superannuation fund trustee;
- willingness to undertake ongoing training, as may be required, to improve knowledge and skills consistent with duties and responsibilities of a director of a superannuation fund; and
- Capacity and the time to commit to the role.
Once the Board is satisfied that nominated individuals meet the required standards, they must appoint those nominated individuals to the Board. All Directors are appointed for a term of up to 4 years.
Vision Super firmly believes that the current director appointment rules strengthen the prudential management of members’ retirement savings.
For more information or assistance, please call our Member Services team on 03 9911 3222 (1300 300 820) if you're calling from a regional area or email us.