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Superannuation Prudential Standards – Regulation Impact Statement – Australian Prudential Regulation Authority

The Australian Government’s Stronger Super reforms recognise that for many Australians, their superannuation savings will form a significant part of their retirement income.  As part of these reforms, the Australian Government has given the Australian Prudential Regulation Authority (APRA) the power to make prudential standards for the superannuation industry.  Prudential standards are a flexible tool that enables APRA to adjust requirements for risk management by participants in supervised industries. On 15 November 2012 APRA released 11 final prudential standards for the superannuation industry.  These standards cover four matters that were referred to APRA by the Australian Government, relating to matters such as risk management; operational risk requirements; and conflicts of interest. In addition, APRA has released standards covering matters including governance arrangements; and investment management.  The standards also harmonise requirements between regulated industries where appropriate; and relocate some existing requirements and guidance into new standards. The majority of the requirements in the prudential standards will take effect on 1 July 2013.  A Regulation Impact Statement (RIS) was prepared by APRA and assessed as adequate by the Office of Best Practice Regulation.