Featured Product

    APRA Consults on Prudential Standard for the Superannuation Entities

    April 30, 2019

    APRA is consulting on the prudential standard on Strategic Planning and Member Outcomes (SPS 515), following the passage of the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No.1 Bill 2019) on April 04, 2019. The comment period for the proposed revisions to SPS 515 ends on May 29, 2019. Also, APRA proposes to maintain the commencement date of SPS 515 as January 01, 2020.

    The Bill introduces a legislated outcomes assessment. APRA is proposing revisions to SPS 515 to clarify how the legislated outcomes assessment interacts with APRA requirements and to specify additional factors to be addressed in the assessment, as provided for in the legislation. The overall substance of the requirements for registrable superannuation entity (RSE) licensees in revised SPS 515 are unchanged, though the requirements are expressed differently to more clearly delineate the APRA requirements from those imposed by the Bill.

    The revised SPS 515 requires a Business Performance Review (BPR) to be undertaken as part of an RSE licensee’s strategic and business planning process. This review reflects the same underlying objective as the requirements set out in the version of SPS 515 released in December 2018. That is, it requires an RSE licensee to be both reflective and forward-looking in identifying the improvements that can be made to enhance the sound and prudent management of its business operations and to drive the sustainable delivery of better outcomes for members. RSE licensees will be required to take into account the results of the legislated outcomes assessment as part of their BPR. The BPR requires an RSE licensee to analyze its performance in achieving its strategic objectives, having regard to its monitoring of its business plan, the outcomes achieved for different cohorts of members, and the results from the legislated outcomes assessment. The first BPR is required to be undertaken by December 31, 2020.

    SPS 515 is also being amended to include requirements for the legislated outcomes assessment, as provided for under the Bill. RSE licensees will be required to:

    • Document the methodology applied in undertaking the legislated outcomes assessment, including how the RSE licensee has determined “comparable choice products”
    • Under section 52(11) of the Superannuation Industry (Supervision) Act 1993 (SIS Act), separately consider the impact of scale and the operating costs of its business operations on the financial interests of members that hold the product

    Additionally, APRA published an information paper on post-implementation review of its superannuation prudential framework. In this post-implementation review, APRA examined whether the 2013 prudential framework for superannuation met its objectives in terms of improving practices of RSE licensees from those observed before 2013, resulted in any unintended consequences, and continues to remain fit for purpose going forward.


    Related Links

    Comment Due Date: May 29, 2019

    Effective Date: January 01, 2020 (Proposed)

    Keywords: Asia Pacific, Australia, Insurance, Superannuation, SPS 515, Prudential Framework, APRA

    Related Articles
    News

    EBA Finalizes Remuneration Standards for Investment Firms in EU

    EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).

    January 21, 2021 WebPage Regulatory News
    News

    ECA Recommends Actions to Enhance Resolution Planning for Banks

    EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.

    January 20, 2021 WebPage Regulatory News
    News

    BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK

    BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.

    January 20, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules on Identity Verification of Depositor Protection

    PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).

    January 20, 2021 WebPage Regulatory News
    News

    FSB Publishes Work Program for 2021

    FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.

    January 20, 2021 WebPage Regulatory News
    News

    FCA Issues Update on Move to New Data Collection Platform

    FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.

    January 20, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Derivation Rules for Reporting by Banks

    Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.

    January 19, 2021 WebPage Regulatory News
    News

    FED Revises Capital Planning and Stress Testing Requirements for Banks

    FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.

    January 19, 2021 WebPage Regulatory News
    News

    ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020

    ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.

    January 19, 2021 WebPage Regulatory News
    News

    ESAs Publish Reporting Templates for Financial Conglomerates

    ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.

    January 18, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6484