AIST was told that it should continue to fly solo and remain committed to the not-for-profit space. Fiona Reynolds, CEO of the association, says this response was vindicating. “This is the reason why AIST came into being, and why it won’t change,” she says. “People wanted to see better collaboration, not a merger with ASFA, because they wanted advocacy for the not-for-profit sector.” However, respondents made it clear that the number of organisations representing not-for profit super left some members flummoxed. They confused AIST’s initiatives with those run by ISN, Industry Funds Forum and the corporate governancefocused Australian Council of Superannuation Investors. Amid this activity, it wasn’t always clear what each association stood for. It wasn’t enough for AIST to be committed to not-for-profit super, and its focus on trustees was unsustainable. The association needed to redefine its mission. “Unless associations continue to grow and change with their memberships, they aren’t going to survive.
Most associations are looking at what the industry will look like in 10 years, and where they will fit in,” Reynolds says. What this new mission should be, exactly, emerged when respondents opined that levels of professionalism and governance in industry super could improve and be vetted. This spurred AIST to “morph” into an association committed to developing these qualities in the sector, in addition to its advocacy role, Reynolds says. Now, AIST is endeavouring to provide accreditation for industry super trustees. In this, it will perform a role like the Financial Planning Association, which certifies financial planners. Its four-day trusteeship courses, which are in the 12-month process of achieving registered training organisation status, will be the platform for this accreditation, and will be supplemented by additional courses. These refreshers aim to align trustees, whose roles in super are typically part-time, with best practice. This should not alarm industry fund trustees that their governance standards are sub-par, Reynolds says.
“One thing that is attacked in every review is the trustee system in the not-for profit sector. I find that hard to understand, because it is the system that outperforms.” Rather, the new accreditation platform is a means of enhancing this model. And such a focus on stewardship will be appreciated by the regulator and the general public, given that industry funds manage more than $219 billion in superannuation money. But AIST’s vocational scope is broader. It will also continue to offer training to the growing ranks of executives and specialist workers in superannuation. This would build on its one-day conferences on subjects such as administration, group insurance and member services. Membership demographics dictate that a major new focus for the association will be financial planning for industry super members. In the next decade, as the baby boomer generation begins retiring, funds need to provide adequate financial advice alongside pension-phase investment products. In response, AIST plans to deliver accreditation programs for three tiers of advice: general advice, limited advice and full financial advice.
