The Australian Prudential Regulation Authority (APRA) has released for consultation updated guidance on investment governance for superannuation trustees.

The guidance is designed to assist trustees in meeting their requirements under Prudential Standard SPS 530 Investment Governance (SPS 530), which comes into effect on 1 January 2023. Background.

Draft Prudential Practice Guide SPG 530 Investment Governance (SPG 530) includes new and additional guidance on:

• the new requirements in SPS 530, including liquidity management, stress testing and valuations practices; and
• APRA’s expectations of how trustees will consider environmental, social and governance (ESG) risk factors as part of their overall investment risk management.

Draft SPG 530 replaces existing APRA guidance on investment governance, Prudential Practice Guide SPG 530 Investment Governance and Prudential Practice Guide SPG 531 Valuations (SPG 531).

APRA expects that prudent RSE licensees would be in a position to meet updated SPS 530 from 1 January 2023, supported where needed by the existing guidance in current SPG 530 and SPG 531. APRA’s supervisory approach, however, will take into account that draft SPG 530 is yet to be finalised.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.