Episode 38: Best Financial Interests duty – concerns with proposed legislation

Legislation currently before Parliament proposes to amend the ‘best interest duty’ to ‘best financial interests duty’ and will fundamentally change the role of super fund trustees.

The draft bill reverses the burden of proof, putting the onus the trustee to prove it discharged its duty rather than on the regulator to prove they did not, as the law currently stands. It also allows regulations to be made banning certain payments or investments - regardless of whether the activity is in the best financial interests of members.

These proposals are part of the Your Future, Your Super  package announced in the 2020 Federal Budget.  If it passes Parliament, the changes will take effect on 1 July 2021.

These are profound and significant changes.  This episode is the audio from a webinar recorded on 10 February where our panel of experts break down the ramifications for trustees.

Speakers

• Natalie Cambrell, Principal Solicitor, KHQ Lawyers
• Scott Connolly, Assistant Secretary, ACTU
• Peter Burn, Chief Policy Advisor, Ai Group
• Christian Gergis, Head of Policy, Australian Institute of Company Directors

Host

• Eva Scheerlinck, Chief Executive Officer, AIST

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