The Australian Prudential Regulation Authority (APRA) has released 11 draft prudential standards for prudentially regulated superannuation funds for consultation.

The standards will be made pursuant to the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012, when passed.

The draft prudential standards include six standards covering matters common to other APRA-regulated industries, where APRA’s approach has been to harmonise its requirements 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 that the Government recommended 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.