RSE reminded on key obligations

23 July 2020
| By Chris Dastoor |
image
image
expand image

Registrable superannuation entity (RSE) licensees have been reminded of two new key obligations to members – the Business Performance Review (BRP) and outcomes assessment – in a letter from the Australian Prudential Regulation Authority (APRA).

Helen Rowell, APRA deputy chair, said over the past 12 months, APRA had consistently encouraged RSE licensees to engage early with APRA on the design of their BPR and the outcomes assessment, due the level of complexity involved in complying with the requirements.

“Despite this, APRA has seen a low take-up of this offer and is concerned that the lack of trial outcomes assessments being shared with APRA may be indicative of a lack of preparedness by the industry,” Rowell said.

The BPR was to be completed by 31 December, 2020, and required each RSE licensee to assess its performance in achieving its strategic objectives across its business operations.

This would consider the results of the legislated outcomes assessment and the BPR would be used as the basis for taking action to improve performance.

The first annual outcomes assessment was required to be completed by the end of February 2021, with the results published within 28 days.

The assessment required RSE licensees to conclude whether members’ financial interests are being promoted in the product they hold.

Under legislation, RSE licensees were required to consider how its MySuper products compared to other MySuper products, as well as its choice products to other choice products.

Rowell said APRA acknowledged the significant efforts of the superannuation industry to protect members’ interests during what has been a volatile and uncertain period.

“In this challenging environment, risks will continue to evolve, potentially rapidly, and all industry stakeholders will have to continue to respond and adapt accordingly,” Rowell said.

“APRA will be engaging closely with RSE licensees as they navigate the period that lies ahead, with a continuing focus on strengthening outcomes for superannuation members.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

1 day 12 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

1 day 12 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

1 day 13 hours ago