The Australian Prudential Regulation Authority (APRA) has released a package of proposals to strengthen trustee investment governance to protect members’ retirement savings through a revised Prudential Standard SPS 530 Investment Governance for Responsible Superannuation Entity licensees.

The proposals increase requirements across eight key areas of risk and build on existing obligations for trustees particularly in the platform sector.

Three proposals would require trustees to:

• set and enforce member-level investment limits for higher-risk investments;
• strengthen the management of investment-related conflicts; and
• ensure their investment oversight capabilities and resources are commensurate with the size and complexity of their investment menus.

APRA is also proposing five changes to codify and strengthen existing expectations for investment onboarding, monitoring, remediation, valuations and accountability.

APRA is considering whether certain trustee remuneration requirements that currently apply to large trustees should be applied to complex trustees of all sizes to appropriately incentivise effective and prudent governance.

If you found this article helpful, then subscribe to our news emails to keep up to date and look at our video courses for in-depth training. Use the search box at the top right of this page or the categories list on the right hand side of this page to check for other articles on the same or related matters.

Author: David Jacobson
Principal, Bright Corporate Law
Email:
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.