The Australian Prudential Regulation Authority (APRA) is to be given prudential standards-making power for prudentially regulated superannuation entities.
APRA has released for consultation a discussion paper Prudential standards for superannuation introducing its proposals for prudential standards for the superannuation industry.
APRA’s prudential standards will cover matters common to other APRA-regulated industries — on Governance, Fit and Proper, Risk Management, Business Continuity Management, Outsourcing, and Audit and Related Matters — as well as the superannuation-specific matters of Conflicts of Interest, Investment Governance, Insurance in Superannuation, Defined Benefit Funding and Solvency, and Operational Risk Financial Requirement.
The paper outlines the key requirements APRA expects to include in each standard.
Following consideration of submissions received on the paper, APRA will release for consultation, early in 2012, draft prudential standards and draft reporting standards, reporting forms and instructions.
The prudential standards for superannuation are expected to be finalised during 2012 with a view to commencement during 2013.
APRA expects to commence the authorisation process in the second half of 2012 for RSE licensees wishing to offer MySuper products. This will allow these products to be made available to beneficiaries from 1 July 2013 onwards. It is expected APRA will have power to authorise MySuper products from 1 January 2013, effective 1 July 2013.
