APRA urges 12-year limit for super board trustees
The Australian Prudential Regulation Authority (APRA) wants superannuation fund directors to serve no more than 12 years on their boards.
APRA deputy chair, Margaret Cole has told a superannuation fund directors forum that APRA was recommending the 12 years on the basis that it believed long tenures eroded the capacity of directors to exercise independent judgement.
“Even in the best organisations, long tenure can block openness to new ideas and different ways of doing things. It is often a barrier to an unvarnished assessment of culture,” she told an Australian Institute of Superannuation Trustees forum.
“So, over the past year, our supervisory teams have been engaging closely with super boards where there has been a lack of focus on board tenure.”
“We’ve made considerable progress to date, with many trustees having resolved their tenure issues. However, there is still more to be done.”
6 years too long