1. C1 Superannuation Governance Leah Fricke Pauline Vamos 2011 ANNUAL CONFERENCE 28 TH ANNUAL CONFERENCE 2011

2. Superannuation Governance Pauline Vamos CEO ASFA

3. What is Superannuation Governance Fiduciary responsibility Acting in the members’ best interest Higher than ASX governance? Investment governance

4. Unique issues Equity between members Sole purpose test Cross sub-sidisation Different sector models have different issues

5. General Governance Prudent person to prudent business person Size, tenure, and diversity Fit and Proper Conflicts – multiple arrangements Independence-voting

6. Investment Governance investment strategy – portability, liquidity, long term (peer pressure) Default, target date and choice portfolios Oversight of fund managers – cost and after tax In-house investing – new governance model ESG and UNPRI Post retirement – liability investing

7. Increasing Challenges MySuper-design, costing, transition Scale and sustainability as a fund Delivery of advice Insurance – tailoring design

8. Even more challenges Superstream – auto consolidation APRA Standards including data collection Operational risk reserves Competition Mergers - DTAs

9. Trustee of the future Global pension fiduciary Business and investment savvy – influence on listed companies Many fiduciaries' outside pension industry Professional trustees?