Featured Product

    APRA Revises Measures to Strengthen Superannuation Member Outcomes

    August 28, 2019

    APRA published the prudential standard SPS 515, thus finalizing changes to the requirements for how superannuation licensees assess the outcomes they are delivering to their members. SPS 515 will come into force from January 01, 2020. To assist registrable superannuation entity (RSE) licensees in implementing the new requirements, APRA released a finalized prudential practice guide SPG 515 on Strategic and Business Planning, along with a draft prudential guide SPG 516 on Business Performance Review for a six-week consultation period that ends on October 10, 2019. APRA expects to release the final version of SPG 516 in December.

    SPS 515 sets out the requirements for an RSE licensee to set strategic objectives for its business operations and to maintain a written business plan that articulates the approach of an RSE licensee to achieving these strategic objectives. SPS 515 contains prudential requirements to ensure that fund expenditure is in the best interests of members and that there is a comprehensive decision-making and monitoring process for expenditure that is determined by its size or nature to be significant. SPS 515 also requires an RSE licensee to undertake a business performance review to annually assess its performance in achieving its strategic objectives. The guidance in SPG 515 relates to the business planning and expenditure management requirements in SPS 515. SPG  is also to be read in conjunction with SPG 516 on Business Performance Review, which provides guidance on the APRA expectations with respect to the business performance review and the annual outcomes assessment required under the Superannuation Industry (Supervision) Act 1993 (SIS Act). The Business Performance Review requires an RSE licensee to analyze its performance in achieving its strategic objectives, including the following:

    • Results of its monitoring of performance against the business plan
    • Outcomes achieved for different cohorts of members against objective internal and external benchmarks
    • Results and underlying analysis from the annual outcomes assessment

    As part of the consultation on SPG 516, APRA has substantially revised the guidance in draft SPG 516 to reflect the legislated outcomes assessment, the Business Process Review, and the movement of some guidance material into SPG 515. APRA is, therefore, releasing SPG 516 as a draft for consultation and welcomes feedback on it, particularly the guidance on the legislated outcomes assessment. The release of draft SPG 516 is intended to provide industry with more certainty on the APRA expectations for the Business Performance Review and components of the legislated outcomes assessment that are not currently envisaged to be dependent on the SIS Regulations. This draft guidance will allow RSE licensees to prepare for implementation of the prudential requirements from January 01, 2020.

     

    Related Links

    Comment Due Date: October 10, 2019 (SPG 516)

    Effective Date: January 01, 2020 (SPS 515)

    Keywords: Asia Pacific, Australia, Insurance, Pensions, Superannuation, SPS 515, Business Performance Review, SPG 516, SPG 515, Outcomes Assessment, APRA

    Related Articles
    News

    BoE Seeks Information Before Migrating Statistical Reporting to BEEDS

    The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.

    October 25, 2021 WebPage Regulatory News
    News

    FCA Publishes Final Rules on Investment Firms Prudential Regime

    The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).

    October 25, 2021 WebPage Regulatory News
    News

    CFRF Publishes Guides to Manage Financial Risks from Climate Change

    The working groups of the Climate Financial Risk Forum (CFRF) published a second round of guides (or Session 2 guides), written by the industry for the industry, to help financial firms manage climate-related financial risks.

    October 21, 2021 WebPage Regulatory News
    News

    PRA Finalizes Policy for Non-Performing Exposure Securitizations

    The Prudential Regulation Authority (PRA) published the final Policy Statement PS24/21 that contains the new Non-Performing Exposures Securitization Part of the PRA Rulebook and an updated Supervisory Statement SS10/18 on the general requirements and capital framework with respect to securitizations.

    October 21, 2021 WebPage Regulatory News
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    EU to Explore Potential of Establishing a Joint Cyber Unit

    The European Council adopted conclusions inviting the European Union (EU) and the member states to further develop the cybersecurity crisis management framework.

    October 19, 2021 WebPage Regulatory News
    News

    EC Sets Out Work Program for 2022

    The European Commission (EC) adopted the work program for 2022.

    October 19, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7598