AIST concurs with the proposal that the board of APRA-regulated entities should be responsible for the remuneration framework and its effective application. We support the principle that remuneration outcomes must be commensurate with performance and risk outcomes and that higher standards must be met for key roles. AIST is concerned that the content of the draft Standard is based exclusively on variable remuneration practices which while prevalent in banking and insurance, are inconsistent with practices in the profit-to-member superannuation sector. Moreover, it is our view that the proposed Standard does not reflect the overarching obligation of trustees to act in their members’ best interests.
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