Independent Review - Australian Prudential Regulation Authority
On 12 December 2018, the Australian Prudential Regulation Authority (APRA) released its prudential framework ‘Strengthening Superannuation Member Outcomes’ for registrable superannuation entity (RSE) licensees.
The package consists of a new Prudential Standard SPS 515 Strategic Planning and Member Outcomes, new guidance in the form of Prudential Practice Guide SPG 515 Strategic and Business Planning and Prudential Practice Guide SPG 516 Outcomes Assessment, and a revised Prudential Standard SPS 220 Risk Management.
The framework is designed to strengthen the focus of RSE licensees on delivering quality outcomes for their members, and includes new requirements for RSE licensees to conduct an annual member outcomes assessment as well as making improvements to strategic and business planning and fund expenditure management.
An independent review, Strengthening Superannuation Member Outcomes, has been certified by APRA as undertaking a process and analysis equivalent to a regulation impact statement. The OBPR does not assess the adequacy of independent reviews.
APRA has estimated the new requirements will result in an increase in average annual regulatory costs to business of $1.9 million.