Minister for financial services Kelly O'Dwyer has released draft legislation for industry consultation that seeks to tighten the governance of superannuation funds.
This is the Coalition government's second attempt to change the governance arrangements for superannuation funds, with an attempt to force funds to increase the number of independent directors on their boards blocked by Senate crossbenchers in December 2015.
Announcing the new draft legislation, Ms O'Dwyer said the package of reforms would require superannuation funds to instigate annual member meetings and publish "more transparent information" about the way their funds are managed.
The changes will replace the current 'scale test' for superannuation funds with an 'outcomes test' for trustees.
The 'outcomes test' will require trustees to assess whether various features are in the best interests of members.
APRA will be given additional powers to refuse or cancel MySuper licences where it believes a registrable superannuation entity (RSE) licensee may not comply with its obligations.
The prudential regulator will more closely oversee (and approve) any changes of ownership of RSE licences under the proposed changes.
"These are sensible reforms that are already being embedded in the practices of high performing funds," Ms O'Dwyer said.
"The government remains committed to previously announced measures relating to governance, transparency and increasing choice for members."
