APRA finalises eight prudential practice guides for superannuation

APRA's expectations in relation to reporting and information systems for reporting.

APRA's requirements for RSE licensees to consider what would be an appropriate degree of objectivity for the person(s) conducting the annual review and that the review does not need to be carried out by someone who is operationally independent.

Pre-defined goals for recovering specified critical business activities to a specified level within a defined period.

An RSE licensee may have a range of strategies to meet the recovery objectives.

BCP to document specific responsibilities and authorities for:

• assessing the impact of the disruption;
• determining an appropriate response;
• implementing the communication plan;
• evacuating staff;
• activating an alternate site if required; and
• implementing recovery objectives.

BCP must be regularly tested and reviewed.

Minimum requirements to be documented in the insurance arrangements to include the responsibilities of the RSE licensee, the insurer's service levels; and dispute resolution arrangements.

APRA's expectation that other matters be documented including:

• underwriting requirements and the responsibilities of the insurer, the RSE licensee or any other party with respect to underwriting;
• any reduction in benefits and premium loadings, including how beneficiaries are notified about additional premiums;
• defined conditions for when claims will be admitted or denied;
• procedures for deducting premiums from beneficiaries' accounts and paying premiums to insurers;
• procedures for notifying and paying claims, including the responsibilities of the insurer when communicating directly with beneficiaries;
• continuation options including notification to beneficiaries;
• liability and indemnity provisions; and
• profit-sharing arrangements.

Objectives for the Board and individual directions to consider in assessing its performance and APRA's expectation that the Board have in place a documented policy on Board performance assessments including:

• timeframe for conducting assessments;
• independence in performance assessments;
• how the Board will manage outcomes; and
• timeframe for action after performance assessments have been conducted.

APRA suggests a sound outsourcing policy addresses:

• all aspects of outsourcing contemplated by an RSE licensee;
• identification of business activities, functions or services covered under the policy;
• whether the policy deals with nonmaterial as well as material business activities;
• selection process and due diligence;
• how the arrangement is considered to be in the best interests of beneficiaries;
• conflict management; and
• whether associated entities are involved.

APRA suggests factors to consider when entering into outsourcing arrangements include:

• how the adequacy of resources requirement will be met;
• service level and performance requirements;
• procedures for the RSE licensee to monitor the performance of the service provider;
• business continuity arrangements;
• provisions around default events, liability and indemnity provisions;
• termination provisions;
• pricing arrangements; and
• dispute resolutions mechanisms.

A primary means to clearly communicate an RSE licensee's approach to the management of conflicts across its business operations is the development of a conflict management policy. APRA expects that in addition to the minimum requirements in Prudential Standard SPS 521, RSE licensees consider whether the policy also documents:

• the relationship between the register of relevant interests and other gifts or interest policies that apply to all employees; and
• processes for reporting additional relevant duties and interests that may not have been disclosed according to the policy