APRA has outlined its superannuation policy priorities for 2018, including a comprehensive post-implementation review of the superannuation prudential and reporting framework.
“Promoting improved governance and management in the superannuation sector is an ongoing priority for APRA, and one which has seen enhanced focus during the last year across APRA’s supervision and policy-making activities,” says an APRA information paper on its policy priorities for the new year.
In December APRA started consulting on a package of proposed changes to the prudential regulation of large superannuation funds. This includes annual reporting on outcomes for members using a broader range of measures, expenditure policies and easier opt-out of insurance.
APRA says it will meet with stakeholders and consider submissions on the proposals in the first half of 2018 and aims to release final requirements in mid-2018. Implementation of the final changes is expected to start from January 2019.
When the proposals were released APRA said the package was independent but aligned with Government policy. The APRA policy document says: “APRA has been engaged in the progress of legislation relating to the Government’s accountability and governance measures. Should this legislation proceed, APRA will consider what changes may be needed to align the prudential framework with the final legislative amendments.”
APRA also intends to “undertake a comprehensive post-implementation review of the remainder of the superannuation prudential and reporting frameworks”.
“The prudential and reporting standards and associated guidance have been in place for five years and such a review is timely, given the pace of change in the industry.”
“This process will involve public consultation on the effectiveness of the framework, including costs and benefits, whether the framework is meeting its objectives and whether any changes could enhance the framework.”
“APRA hopes to report the findings of this review in late 2018 or early 2019. APRA will then consider how best to make any necessary changes to the prudential or reporting frameworks.”