SMC backs principles-based approach to governance

Super Members Council (SMC) has championed the flexibility of a principles-based approach to corporate governance as essential for effective oversight, risk management, and accountability, warning against a 'tick-the-box' approach in its submission to the prudential regulator's Governance Review.

- Andrew McKean

"SMC supports changes in the prudential standards that aren’t overly prescriptive and continue to empower entities to find the most efficient and effective ways to meet regulatory responsibilities as they relentlessly focus on delivering for their members," it said.

SMC also supported APRA’s proposal for significant financial institutions (SFIs) to conduct independent third-party performance assessments every three years, covering boards, committees, and individual directors.

"While there may be increased compliance costs for some entities, the positive impact to improved governance could result in long-term reduced operational costs," SMC said.