From www.professionalplanner.com.au: The third interim report from the Senate Economics References Committee suggests that superannuation funds should be banned from raising capital from members and required to obtain funding from shareholders to cover fines and compensation for mismanagement.

Critics argue that these recommendations threaten the profit-to-member fund structure and could lead to insolvency for funds facing even minor regulatory penalties.

The report also recommends that trustee boards have a majority of independent directors and that all costs related to trustee misconduct should not be funded by members’ assets.