APRA wrote to superannuation fund trustees recently about the outcome of the regulator's consultation paper, titled Governance arrangements for RSE [registrable superannuation entity] licensees.
The paper referenced several changes to superannuation governance as spelled out in the federal government's Superannuation Legislation Amendment (Governance) Bill, including the requirement that independent directors comprise one third of superannuation boards.
The government's bill has failed to pass through the Senate, with a coalition of crossbenchers announcing on 2 December 2015 that they would oppose the bill.
"The government has indicated that the Bill will be considered further in 2016," said the APRA letter.
"As such, APRA does not intend to formally finalise its consultation on governance arrangements at this time."
Commenting on the APRA letter, Corrs Chambers Westgarth partner Michael Chaaya said the regulator's announcement "appears to discount the possibility that APRA will 'go it alone' and implement the governance reforms without government action".
"[However], APRA remains committed to the proposals and intends to formally reflect in the prudential framework its proposed governance changes 'at the earliest opportunity'," Mr Chaaya said.
"RSEs should keep a close eye on future developments from APRA and the government in this politically-charged area of reform," he added.
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