APRA Measures to Strengthen Superannuation Member Outcomes

Superannuation Member Outcomes:

On 13 December 2017, APRA released a consultation package aimed at assisting RSE Licensees to better position themselves for delivering on sound member outcomes.   The package includes proposed changes to the prudential framework to enhance:

  • strategic and business planning;
  • oversight of fund expenditure; and
  • assessment of outcomes for members of RSE’s.

The proposed member-outcomes measures, first outlined in August in a letter to Trustees, includes:

  • changes to the existing prudential standard SPS 220 Risk Management relating to strategic and business planning and fund expenditure policies and processes;
  • a new prudential standard, SPS 225 Outcomes Assessment, requiring all RSE licensees to annually assess the outcomes provided to members using a broader range of measures;
  • new prudential practice guides to assist RSE licensees with their strategic and business planning and the outcomes assessment; and
  • amending SPS 250 to require RSE licensees to provide straight-forward processes for opting-out of all insurance products.

Deputy Chairman Helen Rowell stated APRA wanted to ensure all RSE licensees were prepared to manage emerging challenges, such as changing member demographics and a more competitive environment. APRA intends to engage more closely with RSE Licensees identified as not consistently delivering quality member outcomes.

They also reflect APRA’s ongoing efforts to encourage all RSE licensees to go beyond the minimum legislative requirements by conducting a broader outcomes assessment as part of their strategic and business planning processes,” Mrs Rowell said.

Submissions on APRA’s package are open until 29 March 2018. The new and revised prudential measures are expected to be released by mid-2018, with a proposed commencement date of 1 January 2019.

 

 

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