Superannuation funds must now 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 “fi t 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.

From 1 July 2009 all four employer directors will be appointed by the Board on the nomination of the Municipal Association Victoria (two), Victorian Water Industry Association (one), and Victorian Employers’ Chamber of Commerce and Industry (one). Currently all employer directors are appointed by the nominating bodies without the Board’s direct involvement.

From 1 July 2009 all four member representative directors will be appointed by the Board on the nomination of the Australian Services Union (Victorian Branch.) Currently member representative directors are appointed by election.

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.

Vision Super firmly believes that these changes to the director appointment rules will further strengthen the prudential management of members’ retirement savings.