Superannuation - The Governance of the Funds

Table of Contents

Introduction6

Superannuation Fund Management Industry7

Industry Products7

Industry Activities7

QSuper Fund Governance w.r.t to AIST8

The Funds Governance Policy9

QSuper's Board Policies9

Auditor Independence9

Risk Management and Compliance10

Fraud and Ethics10

Trustee Director and Executive Remuneration10

Board responsibilities10

Board Performance11

Remuneration11

Activities of the Trustee Board11

Trustee Directors11

Committees11

Meetings12

Financial Contributions to Governance13

Conclusion13

References15

Executive Summary

The paper discusses the governance of Australia's leading superannuation fund generating organization with respect to its transparency in terms of following the guidelines and the frameworks of superannuation funds. QSuper acts according to the governance framework of the Australian Institute of Superannuation Trustees (AIST). The need to take special care of the superannuation fund is growing, as the superannuation assets in Australia are growing to an extent that they are now the largest in the world, strengthening the society with strong economic conditions and giving a strong and important role to the fund trustees of managing these assets. For this growing industry, a need for reliability is necessary, which is provided by QSuper who works according to designed guidelines, which complements integrity and professionalism in the attributions, offered to the members for their valuable investments. The criteria for judging the transparency of the governance of funds is discussed in the research paper in detail, mentioning different guidelines provided by the AIST for the superannuation funds. The guidelines mainly include the funds governance policy, trustee director and executive remuneration and activities of the trustee board which affects the members related to the organization. The compliance of the governance is also discussed in the regard with taking aspects of the organizations board policies, auditors independence, risk management compliance, fraud, ethics, board responsibilities, board performance, remuneration, trustee directors, committees, and meetings for the purpose of evaluating the transparency. The guidelines, which are efficiently maintained by QSuper are followed with provisions to benefit the members by exercising best practices in the interest of the members who carry their faith by investing in QSuper. The analysis of QSuper shows how the entity has attained standard of performance by incorporating all the possible guidelines and frameworks of the governance of the funds to manage different portfolios of the fund holders.

Superannuation - The Governance of the Fund

Introduction

QSuper is known for its superior services and valued products offered to members from generations. QSuper is one of the largest providers of superannuation fund facilities in Australia, helping its members to achieve a desired and adequate source of income after and during the retirement period with provisions of quality guidance, products and services.

The government of Queensland holds to be responsible for the States public sector; providing employer sponsorship in arrangement for their superannuation funds, hence, structuring QSuper as an entity to provide and facilitate superannuation schemes for the state's public sector (Sanidas & Jayanthakumaran, 2003).

QSuper acts according to the governance framework of the Australian Institute of Superannuation Trustees (AIST). The AIST is a well-established independent body, which has professional attributes providing guidelines for superannuation funds in Australia. AIST is nonprofit oriented organization, which looks after the two third of the Australian workforces superannuation funds, protecting $450 ...