Assistant Treasurer and Minister for Small Business Kelly O'Dwyer has insisted the proposed governance reforms for superannuation funds are not targeting the not-for-profit sector in a speech where she cited the privacy breach at Cbus as a sign that the current system is "out of step" with the rest of the economy.
Addressing the Committee for Economic Development of Australia (CEDA) in Melbourne, O'Dwyer said having independent directors on boards was critical for achieving the best possible long-term results for members.
"Right now, many super funds are out of step with many other parts of the economy. They are certainly out-of-step with other prudentially regulated sectors, such as banking and insurance, which are required to have a majority of independent directors," she said.
"I say that it is time we raised the bar."
Addressing a "myth" that the policy is set-up to undermine the operations of industry super funds, O'Dwyer was emphatic, though her comments once again referenced "recent examples."
"As I have said publicly many times, the Government does not have a problem with industry funds. While some of the most recent examples of problems do relate to industry funds, these problems are not exclusive to them," she said.
O'Dwyer had already cited the privacy breach at Cbus as a sign that the current system is not working.
"Our governance reforms apply broadly. They are not specific to one particular part of the industry - they will reach across and apply equally to corporate, retail and industry funds," she continued.
"Let me stress again this is not about values and ideology."
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