Don Farrell (SA, Australian Labor Party, Parliamentary Secretary for Sustainability and Urban Water) Share this | Hansard source

I would like to thank those people who made a contribution to this debate, particularly Senator Thistlethwaite, who I thought accurately depicted the nature of this legislation, and also Senator Xenophon, who I also think had a valuable contribution to make.

The bill contains measures that implement changes recommended by the review into the governance efficiency structure and operation of Australia's superannuation system, chaired by Jeremy Cooper. Schedule 1 of this bill applies to duties of trustees, including a requirement to give priority to beneficiaries over other persons where a conflict may exist. Trustees will also have expanded requirements in relation to their investment strategies. They will have a new requirement to develop an insurance strategy for members of their fund and a risk management strategy and also to meet a requirement to maintain financial resources either as trustee capital or as fund reserves to cover the operational risks of the funds that they manage.

Trustees that offer MySuper products will have additional obligations reflecting that these members have effectively delegated all decisions of their superannuation to the trustee. This bill also clearly identifies the duties that apply to the individuals who are directors or corporate trustees of superannuation funds, including acting honestly and in the best interests of their members. Schedule 1 will apply from 1 July 2013. Schedule 2 to the bill will provide APRA with the ability to make prudential standards. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.