Sherry Review Gets Legs

The Sherry Review has moved from the Communiqué stage to the legs stage with the release of the terms of reference and the legs who will be doing the leg work.

Chief Leg will be a full-time Jeremy Cooper, who was formerly Deputy Chairman of ASIC.  The Chief Leg will be supported by five part-time assistant legs, including a representative from Treasury.  The assistant legs have backgrounds in industry funds, investment management, business economics and retail superannuation.

The Review is to report by 30 June 2010 (presumably after the next election) and may report on particular issues before that date.

The terms of reference are to comprehensively examine and analyse the governance, efficiency, structure and operation of Australia’s superannuation system, including the compulsory (Super Guarantee contributions) and voluntary (all other contributions) sections of the system.

The governance aspect of the review will consider the legal and regulatory framework of the super system, including trustee knowledge, skill and training.

The other aspects of the review (efficiency, structure and operation) deal with removing costs and barriers to achieving better investment outcomes. 

It is a pity that the SMSF sector of the superannuation system is not represented.  The SMSF sector is the largest (by asset base) sector of the superannuation system and probably has the most active members of any sector within the superannuation system.