Super Alert – 3 May 2019
This week’s Super Alert covers two APRA releases in relation to member outcomes and a review of the prudential standards.
APRA’s proposed amendments to SPS 515 (Member Outcomes)
On 30 April 2019, APRA issued a letter to all RSEs outlining its proposed revisions to new prudential standard SPS 515 (Strategic Planning and Member Outcomes) which are required as a result of the changes made in the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Act 2019. APRA does not intend to vary the commencement date of SPS 515 which is 1 January 2020.
APRA has prepared a draft version of SPS 515 which includes the following proposed changes:
- Documenting the “methodology applied in undertaking the legislated outcomes assessment, including how the RSE licensee has determined ‘comparable choice products'”; and
- Considering separately “the impact of scale and the operating costs of its business operations on the financial interests of members that hold the product”.
Submissions on the draft standard close on 29 May 2019.
Results of APRA’s post-implementation review of prudential framework
On 30 April 2019, APRA released an information paper entitled “Review of APRA’s 2013 superannuation prudential framework”. The information paper sets out the results of APRA’s post-implementation review of the prudential framework.
According to APRA, the review identified the following matters:
- “the prudential framework has resulted in improved practices across the industry and stakeholders did not identify any material unintended consequences”;
- “…while the original objectives of the prudential framework were largely met, further enhancements to the framework are needed to enable it to remain fit for purpose given the evolution of the industry and changing stakeholder expectations”; and
- “the review has identified some specific areas where APRA will consider enhancements to the framework and/or to its supervisory practices”.
The information paper sets out a table which summarises whether each individual prudential standard achieves its objective, remains fit for purpose and any proposed enhancements.
Please click here to read more.
This alert was written by Natalie Cambrell, Partner, Damian Tarulli, Special Counsel and Sanela Osmanovic, Associate.
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Important Disclaimer: The material contained in this publication is of a general nature only and is based on the law as of the date of publication. It is not, nor is intended to be legal advice. If you wish to take any action based on the content of this publication we recommend that you seek professional advice.