December 12, 2018

APRA released a package of new and enhanced prudential requirements designed to strengthen the focus of registrable superannuation entity (RSE) licensees on the delivery of quality outcomes for their members. Following extensive consultation, APRA has finalized the December 2017 proposals on strengthening superannuation member outcomes. The final package includes response to submissions on the December 2017 consultation, new Prudential Standard SPS 515 Strategic Planning and Member Outcomes, amendments to Prudential Standard SPS 220 Risk Management, new Prudential Practice Guide SPG 515 Strategic and Business Planning, new Prudential Practice Guide SPG 516 Outcomes Assessment, and implementation timeline for RSE licensees. The commencement date of the amended SPS 220 and the new SPS 515 is January 01, 2020.

APRA received submissions from a wide range of industry stakeholders on the December 2017 consultation package, including RSE licensees, service providers, and industry bodies. Fifteen out of the 17 submissions received are publicly available on the APRA website. Generally, industry stakeholders were supportive of the intent of the proposed changes. However, concerns were raised about the level of prescription proposed in some areas and some aspects of implementation. APRA has summarized the key issues raised in submissions and APRA’s response in each chapter of the response paper, including the amendments to its consultation package. The package represents a continuation of a shift in regulatory philosophy for the superannuation industry, from being substantially compliance-focused to the principles-based, outcomes-oriented approach enabled by the new and enhanced prudential requirements. New requirements of APRA are designed to ensure that RSE licensees are equipped to respond to strategic challenges and to soundly and prudently manage their business operations while improving their superannuation products and options, performance, and outcomes for all members.

The Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No.1) Bill 2017 (the Bill) that is before the Parliament would, if passed, introduce a legislated outcomes assessment. APRA’s proposals are consistent with the outcomes assessment proposals in the Bill and are being introduced now to maintain industry momentum toward delivering improved outcomes for members. APRA will review whether amendments are needed to the prudential framework requirements if the Bill is passed by Parliament in future. Additionally, in relation to the reporting proposals canvassed in the December 2017 discussion paper, APRA will be conducting further work to assess the scope and timeframe for amendments to the reporting collection. This work will consider the outcomes of APRA’s post-implementation review of the prudential framework, the Productivity Commission’s final report on its review of superannuation (due December 2018), and the Royal Commission’s final report (due February 2019).

 

Related Links

Effective Date: January 01, 2020 (SPS 220 and SPS 515)

Keywords: Asia Pacific, Australia, Insurance, Superannuation, RSE Licensee, SPS 515, SPS 220, SPG 515, SPG 516, APRA

Related Articles
News

EBA Report Assesses Regulatory Framework for Fintech Activities

EBA published the findings of its analysis on the regulatory framework applicable to fintech firms when accessing the market.

July 18, 2019 WebPage Regulatory News
News

OSFI Revises Capital Requirements for Operational Risk for Banks

OSFI is revising its capital requirements for operational risk, in line with the final Basel III revisions published by BCBS in December 2017.

July 18, 2019 WebPage Regulatory News
News

OSFI Consults on Revised Principles for Management of Liquidity Risk

OSFI proposed revisions to Guideline B-6 on the principles for the management of liquidity risk.

July 18, 2019 WebPage Regulatory News
News

ESMA Guidance on Disclosures for Credit Rating Sustainability Issues

ESMA published the technical advice on sustainability considerations in the credit rating market, along with the final guidelines on disclosure requirements applicable to credit ratings.

July 18, 2019 WebPage Regulatory News
News

FASB Issues Q&A on Estimation of Expected Credit Losses by Firms

FASB issued a second question-and-answer (Q&A) document that addresses more than a dozen frequently asked questions related to the Accounting Standards Update No. 2016-13 titled “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”

July 17, 2019 WebPage Regulatory News
News

US Agencies Delay Enforcing Volcker Rule Restrictions on Foreign Funds

US Agencies (FDIC, FED, and OCC) announced that they will not take action related to restrictions under the Volcker Rule for certain foreign funds for an additional two years.

July 17, 2019 WebPage Regulatory News
News

SRB Announces SRF Receives Cash Injection, Grows to EUR 33 billion

SRB announced that the Single Resolution Fund (SRF or the Fund) received a cash injection of EUR 7.8 billion from 3,186 institutions in 2019, bringing the total amount in the Fund to about EUR 33 billion.

July 17, 2019 WebPage Regulatory News
News

FASB to Propose to Delay CECL Compliance Deadline for Certain Entities

FASB published a summary of the tentative decisions taken at its Board meeting in July 2019.

July 17, 2019 WebPage Regulatory News
News

IMF Publishes Report on 2019 Article IV Consultation with Vietnam

IMF published its staff report in context of the 2019 Article IV consultation with Vietnam.

July 16, 2019 WebPage Regulatory News
News

European Parliament Elects Next President of European Commission

European Parliament elected Ursula von der Leyen from Germany as the first female President of the next European Commission for a five-year term from November 01, 2019.

July 16, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3476