Superannuation entities will be required to conduct an annual Business Performance Review.
This is according to Deputy Chair Helen Rowell, who said that the updated prudential standard, Prudential Standard SPS 515 Strategic Planning and Member Outcomes, released earlier this week by the Australian Prudential Regulation Authority (APRA), will add pressure to trustees of underperforming funds.
“Working together, SPS 515 and the legislated outcomes assessment will strengthen APRA’s ongoing efforts to lift industry practices and drive improvements in the outcomes all RSE licensees deliver for their members,” Rowell said.
She added that this will bring the prudential standard into line with the Treasury Laws Amendment (Improving accountability and Member Outcomes in Superannuation Measures No.) Act 2019. It will come into force from January next year.
“Where trustees fail to respond appropriately, APRA will not hesitate to use its new directions power to protect the interests of superannuation members,” Rowell said.