The Australian Prudential Regulation Authority (APRA) has released a consultation package on changes to superannuation prudential standards designed to enhance strategic and business planning, oversight of fund expenditure and the assessment of outcomes for members of registrable superannuation entities (RSEs).
It is not clear how the final standards will take into account the role of RSE licensees as trustees.
The consultation package proposals include:
- changes to the existing prudential standard SPS 220 Risk Management relating to strategic and business planning and fund expenditure policies and processes;
- a new prudential standard, SPS 225 Outcomes Assessment, requiring all RSE licensees to annually assess the outcomes provided to members using a broader range of measures;
- new prudential practice guides to assist RSE licensees with their strategic and business planning and the outcomes assessment; and
- amending SPS 250 to require RSE licensees to provide straight-forward processes for opting-out of all insurance products.
APRA’s proposals are independent of, but aligned with, Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Bill 2017 which has not yet passed the Senate.
In considering the final form of the standards issued for consultation, APRA will have regard to both feedback from consultation on its own proposals and the final form of any new legislation passed by the Parliament.
The new and revised prudential measures are expected to be released by mid-2018, with a proposed commencement date of 1 January 2019.