According to the amendments, superannuation funds will have to release information about the positions held by and pay of its executive and former executive officers. The legislation covers trustees and also senior managers who can influence the business.
“It is a huge change. It is the first time that there will be mandatory disclosure requirements in the superannuation space – to disclose remunerations of both directors and senior executive staff,” Eva Scheerlinck, executive manager of governance at AIST told InvestorDaily.
The reforms will also require the disclosure of remuneration paid by related entities.
“In many cases, the remuneration paid from the fund is only tiny compared to the remuneration some directors receive as an employee of the trust’s parent company,” Ms Scheerlinck stated.
“No matter where the remuneration is paid from, it should be disclosed and we are pleased to see that this forms part of the new regulatory framework.”
The superannuation advocacy body believes the framework will create a level playing field across the sector.
“The not-for-profit funds have always been a little bit more transparent in the way they operate … They will tell you who is on the board and how they are appointed, and in many cases they have also been telling people what the remuneration of these senior people are,” Ms Scheerlinck said.
“We have not necessarily seen that in all sectors of the superannuation market.”
The changes bring the superannuation sector in line with other disclosure practices in the Australian economy.
“The legislation pretty much mirrors what it is under the corporation law already for listed companies, so there are certainly examples in the marketplace of how the disclosures can be made,” Ms Scheerlinck stated.
