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

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8596