The Australian Prudential Regulation Authority (APRA) has finalised its review of Prudential Standard SPS 515 Strategic Planning and Member Outcomes (SPS 515) following the passage of Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No.1) Act 2019.
The key changes made to the revised SPS 515 are:
- a requirement for each RSE licensee to undertake an annual business performance review (BPR), to assess its performance in achieving its strategic objectives across its business operations, taking into account the results of the legislated outcomes assessment, and to use the BPR as the basis for taking action to improve performance; and
- the inclusion of requirements to support the legislated outcomes assessment.
SPS 515 requires an RSE licensee to both assess its past performance (taking into account the legislated outcomes assessment) and be forward-looking in identifying improvements that would enhance the sound and prudent management of its business operations and drive the sustainable delivery of quality outcomes to members.
SPS 515 will come into force from 1 January 2020.
In order to assist RSE licensees to implement the new requirements, APRA has released a draft SPG 516 Business Performance Review for consultation. APRA expects to release the final version of SPG 516 in December.