The Australian Prudential Regulation Authority (APRA) has released its response to submissions on the implementation of prudential standards for the superannuation industry. 

Released is APRA’s response paper, which details the main issues raised in the 41 submissions received and APRA’s response to those issues, as well as 11 draft prudential standards.
This response package follows release in September 2011 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 draft prudential standards include six standards covering matters common to other APRA-regulated industries, where APRA’s approach has been to harmonise its requirements where appropriate. These standards are: 

• Prudential Standard SPS 220 Risk Management;
• Prudential Standard SPS 231 Outsourcing;
• Prudential Standard SPS 232 Business Continuity Management;
• Prudential Standard SPS 310 Audit and Related Matters;
• Prudential Standard SPS 510 Governance; and
• Prudential Standard SPS 520 Fit and Proper.

The remaining five prudential standards cover matters that are specific to superannuation. They include reforms that the Government recommended APRA implement as prudential standards, as well as the relocation of some existing requirements and guidance into new standards. These standards are:

• Prudential Standard SPS 114 Operational Risk Financial Requirement;
• Prudential Standard SPS 160 Defined Benefit Matters;
• Prudential Standard SPS 250 Insurance in Superannuation;
• Prudential Standard SPS 521 Conflicts of Interest; and
• Prudential Standard SPS 530 Investment Governance.