Draft additional Australian superannuation fund regulations require disclosure of trustee and executive pay
06/05/2013
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The exposure draft Superannuation Legislation Amendment (MySuper Measures) Regulation 2013 released on 30 April sets out the proposed requirements for disclosing information about executive officer remuneration and the fund.

Trustees will be required to disclose information about the positions held by, and benefits provided to, its executive officers and former executive officers. The information is not limited to benefits provided by the trustee. Benefits include salary and bonuses, superannuation benefits, sign on bonuses, retention payments, termination payments, shares, rights and options.

Trustees will also be required to make publicly available rules relating to the appointment and removal of directors, and information about each director including a record of their attendance at board meetings.

Proposed regulation 2.37 of the SIS Regulations will set out the details of information relating to remuneration that must be published, and kept up to date, at all times on the super fund’s website.

From 1 July 2013, super funds will have a new obligation to disclose the remuneration of each director or other executive officer if the super fund is a body corporate, or each trustee if the super fund is a group of individual trustees. Super funds will need to disclose all payments, benefits and compensation. The information is to be disclosed at the end of each financial year, so that after the first period, there would be comparative information available.

This regulation is modelled on the existing requirements for listed companies under regulation 2M3.03 of the Corporations Regulations. The additional reporting requirements for this regulation described by us HERE do not feature in this draft.

An additional item to be disclosed is where monies are attributable to the service as a director and are not paid to the director. For example, in funds where the director has been appointed by an employer or employee sponsor and the fees for their service are paid to the organisation rather than directly to the person, the name of the organisation and amount paid will also need to be disclosed.

For other information that does not fall into these categories, such as remuneration policies, it is expected that ASIC will provide guidance to the industry on the minimum information that should be included in these documents. In addition, APRA has set requirements for Remuneration Policy in the Governance Prudential Standard SPS 510, that we reported on HERE.

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