On 10 November 2022, APRA issued a Media Release, announcing they will consult on their Discussion Paper, proposing a series of proposed enhancements to the prudential standards for superannuation trustees planning to transfer members out of – or into – their fund. Submissions in response to this discussion paper are requested to be provided to APRA by 10 March 2023.
The ‘Executive Summary’ of the Discussion Paper, is in the following terms.
The superannuation industry continues to consolidate. APRA has observed, however, cases where RSE licensees have not planned or executed transfers in a prudent and timely manner, leading to poor outcomes for members.
In the context of the legislated performance test and APRA’s heatmaps, it is important that all RSE licensees consistently meet minimum standards for planning, pre-positioning and executing transfers of members.
Effective planning will also ensure that RSE licensees are able to respond promptly and appropriately in the event of a crisis, and that members are well supported in such a scenario.
APRA intends to introduce:
- requirements in Prudential Standard SPS 515 Strategic Planning and Member Outcomes (SPS 515) to ensure all RSE licensees are appropriately prepared to transfer, or receive, members, elevating what was previously guidance;
- new requirements relating to the transfer of MySuper product assets, in the event of cancellation of an authority to offer a MySuper product; and
- updated transfer planning guidance to replace existing Prudential Practice Guide SPG 227 Successor Fund Transfers and Wind-ups.
This discussion paper outlines these proposed requirements. It builds on a previous discussion paper, ‘Strategic planning and member outcomes: proposed enhancements’, released in August 2022 (the SPS 515 discussion paper – Discussion paper – Strategic planning and member outcomes: Proposed enhancements).1
Submissions in response to this discussion paper are requested to be provided to APRA by 10 March 2023. Responses to this paper will inform proposed amendments to SPS 515 and updated transfer planning guidance, as well as requirements relating to the transfer of MySuper product assets (which are expected to come into effect from 1 July 2023). APRA intends to consult on revisions to SPS 515 and updated transfer planning in the first half of 2023.
[Tax Month – November 2022 – Previous Month, 11.11.22]