Featured Product

    APRA Consults on Prudential Standard on Insurance in Superannuation

    November 25, 2019

    APRA proposed revisions to the prudential standard SPS 250 on insurance in superannuation. SPS 250 establishes requirements for registrable superannuation entity (RSE) licensees with respect to making insured benefits available to beneficiaries. The proposed changes to SPG 250 are aimed at improving superannuation member outcomes by helping trustees select the most appropriate policies for their members and monitor their ongoing relationships with insurers. The consultation ends on February 03, 2020 and APRA is expected to finalize SPS 250 by mid-2020. The revised standard will come into effect on January 01, 2021.

    APRA has proposed that certain transitional requirements will commence on the date of registration of revised SPS 250 (anticipated to be in July 2020), with the remaining requirements to commence on January 01, 2021. The proposed revisions will require:

    • a process that enables beneficiaries to easily opt-out of insurance cover
    • that the level and type of insurance cover not inappropriately erode the retirement income of beneficiaries
    • that any status attributed to a beneficiary in connection with the provision of insurance is fair and reasonable (Royal Commission Recommendation 4.15)
    • independent certification that insurance arrangements are in the best interests of beneficiaries (Royal Commission Recommendation 4.14)

    APRA decided to update SPS 250 following the post-Implementation review of the superannuation prudential framework. The review recommended enhancements to the APRA requirements and guidance on the strategy, design, and selection of insurers and how these affect member outcomes. The proposed changes also respond to two of the recommendations from the Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry Final Report. The insights from this consultation will also form the basis of a revised Prudential Practice Guide SPG 250 on Insurance in Superannuation, which APRA will consult on early next year. 


    Related Links

    Comment Due Date: February 03, 2019

    Effective Date: January 01, 2021

    Keywords: Asia Pacific, Australia, Insurance, Superannuation, Pensions, Royal Commission Recommendations, SPS 250, APRA

    Related Articles
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    News

    SEC Extends Comment Period on Climate Risk Disclosures

    The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.

    May 09, 2022 WebPage Regulatory News
    News

    APRA Reduces Committed Liquidity Facility, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.

    May 09, 2022 WebPage Regulatory News
    News

    CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks

    The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.

    May 06, 2022 WebPage Regulatory News
    News

    PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down

    The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.

    May 06, 2022 WebPage Regulatory News
    News

    EBA Updates Standards for 2023 Benchmarking of Internal Approaches

    The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.

    May 06, 2022 WebPage Regulatory News
    News

    EIOPA Responds to Stakeholder Views on Blockchain in Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.

    May 06, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8179