APRA releases response to submissions on prudential standards for superannuation

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

APRA’s response paper 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.

APRA Deputy Chairman Ross Jones said there was a high level of interest shown by industry and other stakeholders in APRA’s proposals.

‘It is encouraging that the submissions were unanimously supportive of APRA’s broad objectives in establishing prudential standards for superannuation and, consequently, raising the minimum requirements for trustees to prudently manage members’ money.

‘The draft prudential standards clearly articulate that the primary responsibility for prudent management of superannuation funds rests with trustees and the boards of directors,’ Mr Jones said.

The draft prudential standards released today include six standards covering matters common to other APRA-regulated industries, where APRA’s approach has been to harmonise its requirements where appropriate.

APRA’s response paper and the 11 draft prudential standards can be found on the APRA website