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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