APRA has released 11 draft prudential standards together with a Response Paperon submissions received in respect of the implementation of its proposed powers to issue prudential standards for superannuation.
APRA’s Response Paper sets out the main issues raised in the 41 submissions received in relation to its September 2011 discussion paper, which outlined APRA’s approach to the introduction of prudential standards for superannuation. APRA Deputy Chairman Ross Jones said some aspects of its proposals have been revised in response to the submissions, most significantly in relation to the operational risk financial requirement and to the scope of the standard in relation to defined benefit funds.
The draft prudential standards include 6 standards (covering matters common to other APRA-regulated industries) including: risk management (SPS 220); outsourcing (SPS 231); business continuity management (SPS 232); audit and related matters (SPS 310); governance (SPS 510); and fit and proper (SPS 520). The other 5 prudential standards cover matters that are specific to superannuation covering: operational risk financial requirement (SPS 114); defined benefit matters (SPS 160); insurance in superannuation (SPS 250); conflicts of interest (SPS 521); and investment governance (SPS 530). Mr Jones said the draft standards clearly articulate that the primary responsibility for prudent management of superannuation funds rests with trustees and the boards of directors. The prudential standards are expected to be finalised by the end of 2012 to generally commence on 1 July 2013.
SUBMISSIONS on the draft standards are due by 20 July 2012.
Source: APRA media release No 12.13, 27 April 2012.
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