Super Reforms: Governance

Super Reforms – Governance

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APRA prudential standards

APRA issued a Discussion Paper, dated 28 September 2011, entitled Prudential standards for superannuation which outlines APRA’s proposals to introduce 12 prudential standards for superannuation. The Paper covers topics common to other APRA-regulated industries as well as those specific to super.

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

Submissions on the Discussion Paper are due on 23 December 2011. To prepare for our consultation process and because of the breadth of the areas that will be regulated by the prudential standards, ASFA recently 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
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. Submissions of the discussion paper were due on 23 December 2011. ASFA’s submission is available here.
Oct – Nov 2011	APRA & 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.
April 2012	Draft standards are expected to be released in April 2012.
December 2012	Consultation on the draft standards will conclude.
1 July 2013	APRA Standards to commence from 1 July 2013.

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