AIST's Governance Code is a principles-based framework which goes beyond current regulatory requirements, cementing a high benchmark of practice in Australia. The 2022 Code is the second edition of the Code. It consists of 8 principles and 22 requirements and aims to promote continuous improvement in governance practice, improve accountability and transparency, and protect and improve outcomes for members.
Governance Code reporting
In the fiscal year 2022/23 funds will not be required to submit reports to AIST against either the 2022 or the 2017 version of the Code. Funds are still encouraged to review their practices against the 2022 version of the Code to ensure that they meet or exceed the requirements.
The next code reporting period will be 2023/24 fiscal year against the 2022 version of the code.
Governance Code resources
Governance Code Leading Practice Examples 2023 includes models leading practice examples for a selection of the 22 requirements based on the 2017 version of the Code.
Further information on the Code and/or reporting processes is available by emailing firstname.lastname@example.org or Holly Lindsay, AIST Senior Manager, Governance.
The original (2017) Governance Code became mandatory for AIST member on 1 July 2018 and fiscal year 2022 was the fourth full year of reporting by member funds.
The independent assessment of fiscal year 2022 reporting is available here . The report analyses 31 AIST member compliance reports against the 2017 version of the Code <pls put a link in to the ‘old’ code>. It finds that the funds have continued to improve their level of compliance. Five areas where governance practice and reporting were identified:
Diversity: Demonstrate a written diversity policy setting out measurable objectives with annual reporting to the Board and members to ensure the broadest talent pool is tapped (Requirement 1.4).
Board Evaluation: Annually evaluate performance of the collective board and individual trustees; disclose the process and annual implementation (Requirement 1.5).
Evaluation of Senior Management: The Board of a profit-to-member superannuation fund must have a documented process for evaluating the performance of the senior management. The fund should disclose whether such a performance evaluation was undertaken during the reporting period (Requirement 1.6).
Skills Matrix: Maintain a matrix showing skills, experience and diversity which acknowledges gaps the board will fill to fulfill its strategic plan; disclose a representation of the matrix (Requirement 2.2); and
Chair Skills and Experience: The Chair of a profit-to-member superannuation fund Board must be appointed by the Board and must satisfy all the requirements of skill and experience identified in the fund’s skills matrix for the role of Chair (Requirement 2.5).
Assessment of reporting against the 2017 version of the Code for previous years are available:
Fiscal Year 2021
Fiscal Year 2020
Fiscal Year 2019