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

    APRA Consults to Standardize Submission Date for Quarterly Reporting

    APRA proposed to standardize quarterly reporting due dates for authorized deposit-taking institutions. The proposed standardized due date is 35 calendar days after the last day of the reference quarter, which will create a 14-calendar-day extension for credit unions and building societies.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Publishes Methodology and Draft Templates for Stress Tests in 2020

    EBA published a package for the 2020 EU-wide stress test exercise for banks.

    November 07, 2019 WebPage Regulatory News
    News

    EC Publishes Results of Fitness Check of Reporting Requirements in EU

    EC published results of the fitness check of supervisory reporting requirements in financial services legislation in EU.

    November 07, 2019 WebPage Regulatory News
    News

    BCBS Assesses NSFR and LE Rules in Argentina and China as Compliant

    BCBS published reports that assess the implementation of net stable funding ratio (NSFR) and large exposures, or LE, framework in Argentina and China.

    November 07, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of Plenary Meeting in Paris

    At the meeting, the Plenary reviewed vulnerabilities in the global financial system, fintech developments (including developments in the crypto-asset markets), ongoing work of FSB, and the work program for 2020.

    November 07, 2019 WebPage Regulatory News
    News

    HKMA Highlights Technology Initiatives at the Hong Kong FinTech Week

    HKMA co-organized, with InvestHK, the Hong Kong FinTech Week 2019, which was a five-day flagship fintech event that attracted thousands of attendees worldwide.

    November 06, 2019 WebPage Regulatory News
    News

    ECB Report on Fallback Provisions in Contracts Referencing EURIBOR

    ECB published a report, by private sector working group on euro risk-free rates, presenting recommendations for fallback provisions in contracts for cash products and derivative transactions referencing EURIBOR.

    November 06, 2019 WebPage Regulatory News
    News

    EC Regulation on Homogeneity of Underlying Exposures in Securitization

    EC published the Delegated Regulation 2019/1851 regarding the regulatory technical standards on the homogeneity of the underlying exposures in securitization.

    November 06, 2019 WebPage Regulatory News
    News

    FSI Examines Regulatory Approaches on Climate Risk Assessment

    The Financial Stability Institute (FSI) of BIS published a paper that examines the regulatory approaches being used for climate risk assessment in the insurance sector, in particular through enterprise risk management (ERM) frameworks.

    November 06, 2019 WebPage Regulatory News
    News

    SRB Launches Q&A Process for Resolution Reporting

    SRB has setup a dedicated solution for raising questions on the resolution reporting.

    November 06, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4112