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Issue 881, 6 December 2022 
In this issue: 

 

Recovery and exit planning: prudential standard finalised 

APRA has finalised its prudential standard CPS 190 Recovery and exit planning, aimed at reinforcing the resilience of the financial system. 

The new standard aims to ensure APRA-regulated entities are better prepared to manage periods of severe financial stress. 

CPS 190 will come into effect from 1 January 2024 for banks and insurers, and from 1 January 2025 for registrable superannuation entity (RSE) licensees. APRA has indicated the longer timeframe for RSE licensees “supports these entities in responding to other related reforms for the sector, including the recently released consultations on draft requirements for superannuation transfer planning and financial resources for risk events in superannuation. These complementary reforms further reinforce the objectives of CPS 190, by supporting prudent transfers of members and access to financial resources in a range of risk events.” 

APRA has published a letter outlining its response to the feedback received during consultation on a draft of CPS 190 (see ASFA Action issue 836, draft CPS 190 was then titled Financial contingency planning). APRA notes that the standard has been finalised without material revision to the draft proposals. 

APRA has also recently consulted on draft guidance to accompany CPS 190 – see ASFA Action issue 868 for background. 

 

Direction for data collections: APRA response to consultation 

APRA has released its response to a consultation earlier this year on its direction for data collections. 

APRA’s consultation paper set out a five-year roadmap for transforming its approach to collecting financial industry data from its regulated entities (see ASFA Action issue 849 for background). 

APRA’s response to issues raised during its consultation includes a commitment to: 

APRA Deputy Chair Helen Rowell said: “The proposed shift to more granular collections will enable APRA and all other stakeholders to benefit from deeper insights, while ultimately reducing the burden for industry. Our data collections roadmap is ambitious and will require significant investment from industry to achieve this transformation over the next five years.” 

 

Bills update 

Parliament has concluded its sittings for 2022 and will not sit again until 6 February. 

There were some major developments late last week in relation to the Financial Accountability Regime (FAR) and the Compensation Scheme of Last Resort (CSLR):  

In addition to the Bills noted above in relation to the FAR and the CSLR, two further Bills relevant to superannuation remained before Parliament when it rose:  

Treasury Laws Amendment (Modernising Business Communications and Other Measures) Bill 2022  – this Bill remains before the House of Representatives. The Bill contains amendments addressing a diverse range of measures, including in relation to modernising business communications, implementing recommendations from the Australian Law Reform Commission’s Interim Report A from its review of the financial services legislative framework, and miscellaneous amendments to the Superannuation Industry (Supervision) Act 1993. See ASFA Action issue 880 for background. 

A further three relevant Bills that have been passed by Parliament (see ASFA Action issue 880) are still awaiting Royal Assent: 

The Treasury Laws Amendment (2022 Measures No 3) Act 2022 received Royal Assent on 5 December. As reported in ASFA Action issue 880, while this initially included a modification to the Your Future, Your Super performance test for faith-based products, this was removed prior to passage of the Bill by Parliament. The Act does not include any measures relevant to superannuation. 

 

Updated prudential standards: audit, derivatives 

APRA has formally determined two updated prudential standards relevant to superannuation: 

 

Annual members’ meeting notice regulations: disallowance motion deferred 

As reported in ASFA Action issue 880, Independent Senator Jacqui Lambie had given notice that she would, on 30 November, move a motion to disallow the Superannuation Industry (Supervision) Amendment (Annual Members’ Meetings Notices) Regulations 2022. The regulations amend the disclosure requirements for registrable superannuation entities’ annual members’ meeting notices. 

Senator Lambie’s disallowance motion was deferred until 6 February, when Parliament resumes. 

 

 

ASFA REGULATORY WATCHLIST

ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations

and other regulatory announcements relevant to superannuation.

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