What does APRA expect from trustees where the directors are also executives of related companies that provide services to the trustee?
APRA expects the trustee’s fit and proper policy to contain robust processes for identifying and managing the actual and potential conflicts of interest. The governance processes must demonstrate that the directors are acting genuinely at arms-length, alternative arrangements were considered and evaluated as part of the due diligence before entering into any arrangement with a related party and that the agreements have been negotiated on a commercial basis. Top FAQ3.6 – Removal of Trustees: paragraph 19 of SGN 110.1 Superannuation Guidance Note on Fit and Proper states that “the trustee policy should include a process for dealing with persons who are not fit and proper, including a process for removal of such persons in circumstances where it is necessary to do so.” What must trustees consider when formulating a process or procedure in accordance with Regulation 4.14 for removal? Any process established by an entity for the removal of trustees or corporate trustee directors must reflec
