Most super funds are now required to hold Annual Member Meetings (AMMs), the aim of which is “to give members an opportunity to ask questions about the fund, the trustee, any audit, any actuarial investigation, or any other information included with the notice of the meeting.” But what does that actually mean?
The basics
Timing: Your AMM can be held up to 9 months after the end of your financial year.
Notice of meeting: Must be given to ALL members at least 21 days; and not more than 3 months before the meeting.
Questions: MUST be answered at the meeting or in follow up comms unless one of the (very limited) specific caveats is met.
Who has to attend: The fund Chair & Directors, the Responsible Officers (probably your Exec/C-suite), the fund Auditor and the fund Actuary.
Your key decisions:
Like many things, starting with the end in mind can make all the difference.
Every super fund is different. Different members, different challenges, different internal capabilities. Take yourself forward to March 2021 and imagine yourself looking back at the AMM experience.
Where did your AMM fit into your broader member engagement strategy? How did your members find the experience? What did you do to ensure that your AMM was a worthwhile expenditure of time, effort and dollars?
Production values: Meet the minimum requirements or make it an AMM to remember?
Meeting Chair: Tradition says this is the Chairperson of the fund, but it’s not written in law.
Technology: What level of risk is acceptable? What branding do you need? What experience will your members expect?
Q&A management: You need an engaging approach but tightly risk managed. How will you achieve that balance?
Outsource or DIY or a combo: Who in your business has prior AGM experience? Is your first AMM the right time to DIY?
Required attendees: There is a long list of required attendees. How will you calm their nerves and ensure a good outcome?
Tips & Traps
Tips
Get the date locked in early. With so many required attendees, don’t wait to get the date locked away.
‘legal requirements’ vs member engagement. While AMMs are a ’legal requirement’, they don’t have to a ’legal proceedings’. ‘Nuf said.
Focus on your members. Don’t worry about what other funds are doing. Meet your members where they are and you’re on your way to success.
Ask for help. This is a new area and the regulators are going to be watching with interest. Plus 2020 has been crazy already and might get worse. Don’t let the AMM be the last straw.
Traps
Question management. While you most definitely need an engaging member experience you also need to manage questions very carefully. Every response will be on the record and open to scrutiny.
Amateur hour online meeting. Bad lighting, audio/visual drop-outs, too many chins, death by speech, background noise, the list goes on. How will you ensure this doesn’t happen?
Risk management. Unlike an AGM, you can’t adjourn if something goes awry. For instance if the tech fails or required attendees don’t show, what’s your fall back position? How will you comply with the legislation?
Most members will NOT attend the AMM. ASX 200 companies expect between 0.2% to 0.5% attendance at AGMs. Given that AMMs are all about increasing member engagement, what’s your plan?