The new Prudential Standard is expected to come into effect from 2023.
On 30 April 2021, APRA issued draft guidance open for consultation until 23 July 2021. The Guidance aims at providing principles and good practice for RSE Licensees in relation to their business models and financial risks.
APRA has stated it will make further adjustments to the Standard and the Guidance following finalization of the Financial Accountability Regime.
The key expectations of the new Standard will require Trustees to:
- provide continuous disclosure on remuneration governance and oversight including transparency over the Remuneration Policy and process undertaken to determine remuneration outcomes;
- provide details on how remuneration is designed including any financial and non financial performance measures, and any rationale for weights given to each measure;
- disclose remuneration outcomes for specific individuals including material risk takers; and
- outline any consequence management applied, including details of any downward adjustments.
APRA is mindful that some information may be commercial in-confidence and the privacy of individuals will need to be balanced and Trustees will need to consider how it will maintain these protections while also providing sufficient information to meet the requirements of the Prudential Standard.
Timeline from here
- The new Standard is expected to be completed before the end of 2021.
- Trustees will be expected to comply with the new Standard from 1 Jan 2023 with staged implementation