The Australian Prudential Regulation Authority (APRA) has released a response paper and 11 final prudential standards for the superannuation industry.
The final prudential standards include six standards covering matters common to other APRA-regulated industries, where APRA’s approach has been to harmonise requirements between regulated industries where appropriate.
These standards are:
•Prudential Standard SPS 220 Risk Management;
•Prudential Standard SPS 231 Outsourcing;
•Prudential Standard SPS 232 Business Continuity Management;
•Prudential Standard SPS 310 Audit and Related Matters;
•Prudential Standard SPS 510 Governance; and
•Prudential Standard SPS 520 Fit and Proper.
The remaining five prudential standards cover matters that are specific to superannuation. They include reforms the Government recommended that APRA implement as prudential standards, as well as the relocation of some existing requirements and guidance into new standards. These standards are:
•Prudential Standard SPS 114 Operational Risk Financial Requirement;
•Prudential Standard SPS 160 Defined Benefit Matters;
•Prudential Standard SPS 250 Insurance in Superannuation;
•Prudential Standard SPS 521 Conflicts of Interest; and
•Prudential Standard SPS 530 Investment Governance.
The majority of the requirements in the prudential standards will take effect on 1 July 2013.
Bright Law is experienced in advising on risk management, outsourcing, business continuity management, governance, Fit and Proper policies and conflicts of interest.
