When it comes to super funds, fee and risk transparency are more important than what fund managers are paid, according to a leading governance expert.
Dean Paatsch of Governance Matters tells LeadingCompany he doesn’t think it matters to the customers of superannuation funds what level of pay fund managers receive.
“What’s important is the transparency of the fees, and the transparency of the risks of the investment strategy.”
His comments came amid reports of independent senator Nick Xenaphon preparing a bill that would force privately-owned super funds to disclose what they pay their fund managers.
”The transparency framework for super funds hasn’t caught up with their exponential growth or their critical importance to the savings of millions of Australians,” Xenaphon told Business Day.
The Financial Services Council has condemned the legislation. It says fund manager pay levels are “proprietary information”.