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Prudential Standards Compliance Tool

The sheer breadth and depth of the APRA Standards is quite overwhelming. The Prudential Standards Compliance Tool will save your compliance teams having to go through each of the Standards and interpret them. Compiled by HWL Ebsworth, this comprehensive tool is comprised of guides to four specific areas which will have new compliance requirements for your organisation. Find out more.

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APRA prudential standards

On 27 April 2012 APRA released its response to submissions on the implementation of prudential standards for the superannuation industry.

This response package follows the September 2011 release of APRA's Discussion Paper, Prudential standards for superannuation, which outlined APRA's approach to the introduction of prudential standards for the superannuation industry.

In response to submissions received, APRA has made revisions to some aspects of its proposals, most significantly in relation to the operational risk financial requirement and to the scope of the standard in relation to defined benefit funds.

The proposed standards include those extended from the banking and insurance sectors as well as standards specific to the superannuation industry.

Prudential standards extended from banking and insurance sectors:

  • Governance
  • Fitness and propriety
  • Outsourcing
  • Business continuity management
  • Risk management
  • Audit and related matters

Prudential standards specific to the superannuation industry:

  • Investment governance
  • Conflicts of interest
  • Defined benefit funding and solvency
  • Operational risk financial requirement
  • Insurance in superannuation>
  • Transition to MySuper

ASFA lodged its submission on the draft standards on 20 July 2012.

In late 2011 ASFA hosted a national series of seminars, where senior APRA representatives discussed the proposed prudential standards making power.

ASFA's views on the key messages from APRA and the issues/concerns raised by ASFA members at the national seminars can be downloaded here.

Date Development Update
2011
28 Sep 2011 APRA releases Discussion Paper introducing its proposals for prudential standards for the superannuation industry. A copy of the APRA Discussion Paper is available on the APRA website here.
Oct – Nov 2011 APRA and ASFA conduct a national roadshow on the proposed APRA standards and the transitioning to MySuper. The key messages from the APRA Standards roadshow are available here for ASFA members.
22 Dec 2011 ASFA’s lodges its submission in response to APRA’s Discussion Paper . ASFA's submission is available here.
2012
27 Apr 2012 APRA releases draft prudential standards with a three-month consultation period. APRA also releases a response paper that details the main issues raised in submissions to an earlier Discussion Paper. The draft standards and the response paper are available on the APRA website here.
20 Jul 2012 ASFA submission on the draft prudential standards lodged with APRA. ASFA’s submission is available here.
15 Nov 2012

APRA issues final prudential standards for superannuation.

 Access the APRA Media Release here.
22 Nov 2012

The legislative instruments that support the prudential standards were registered in November. The Superannuation (prudential standards) determinations and the supporting explanatory statements are available below:

  1. Superannuation (prudential standard) determination No. 1 of 2012 - Prudential Standard SPS 114 - Operational Risk Financial Requirement. This instrument determines Prudential Standard SPS 114 Operational Risk Financial Requirement
  2. Superannuation (prudential standard) determination No. 2 of 2012 - Prudential Standard SPS 220 - Risk Management. This instrument determines Prudential Standard SPS 220 Risk Management.
  3. Superannuation (prudential standard) determination No. 3 of 2012 - Prudential Standard SPS 231 - Outsourcing. This instrument determines Prudential Standard SPS 231 Outsourcing.
  4. Superannuation (prudential standard) determination No. 4 of 2012 - Prudential Standard SPS 232 - Business Continuity Management. This instrument determines Prudential Standard SPS 232 Business Continuity Management.
  5. Superannuation (prudential standard) determination No. 5 of 2012 - Prudential Standard SPS 250 - Insurance in Superannuation. This instrument determines Prudential Standard SPS 250 Insurance in Superannuation
  6. Superannuation (prudential standard) determination No. 6 of 2012 - Prudential Standard SPS 510 - Governance. This instrument determines Prudential Standard SPS 510 Governance.
  7. Superannuation (prudential standard) determination No. 7 of 2012 - Prudential Standard SPS 521 - Conflicts of Interest. This instrument determines Prudential Standard SPS 521 Conflicts of Interest.
  8. Superannuation (prudential standard) determination No. 8 of 2012 - Prudential Standard SPS 530 - Investment Governance. This instrument determines Prudential Standard SPS 530 Investment Governance.
Dec 2012 APRA intends to launch the first tranche of the draft Prudential Practice Guides (PPGs) which support the prudential standards.  
11 Dec 2012

APRA releases draft prudential practice guides (PPGs). The draft PPGs are:

  • Prudential Practice Guide SPG 114 Operational Risk Financial Requirement;
  • Prudential Practice Guide SPG 220 Risk Management;
  • Prudential Practice Guide SPG 231 Outsourcing;
  • Prudential Practice Guide SPG 232 Business Continuity Management;
  • Prudential Practice Guide SPG 250 Insurance in Superannuation;
  • Prudential Practice Guide SPG 510 Governance;
  • Prudential Practice Guide SPG 520 Fit and Proper;
  • Prudential Practice Guide SPG 521 Conflicts of Interest;
  • Prudential Practice Guide SPG 530 Investment Strategy – Formulation; and
  • Prudential Practice Guide SPG 531 Investment Strategy – Implementation.

A second set of draft PPGs will be released for consultation in the second quarter of 2013.

The draft PPGs and the discussion paper are available on the APRA website here.

ASFA's submission dated 5 March 2013 is available here.
2013
6 Feb 2013 APRA issues an updated FAQs regarding the prudential standards for superannuation.
28 Mar 2013 APRA releases final reporting requirements for superannuation. See also APRA’s Reporting Framework FAQs.
16 Apr 2013 APRA releases updated Prudential Standards FAQs.
1 Jul 2013 APRA Prudential and Reporting Standards to commence from 1 July 2013 and APRA to release first set of final Prudential Practice Guides (PPGs).  
Oct 2013 APRA to release second set of final Prudential Practice Guides (PPGs).