APRA issues super prudential practice guides

Guidance not affected by Cooper review

By Victoria Papandrea
Wed 11 Aug 2010

APRA releases prudential practice guides to help super trustees satisfy their licence conditions and operating standards.

The Australian Prudential Regulation Authority (APRA) has released a response paper and prudential practice guides (PPGs) for superannuation trustees in the areas of capital, risk management, adequacy of resources and fitness and propriety.

The PPGs - which replace APRA's previously issued guidance in these four areas - are intended to assist trustees to satisfy licence conditions and operating standards under the Superannuation Industry (Supervision) (SIS) Act and the relevant SIS Regulations.

The PPGs are Superannuation Prudential Practice Guide - SPG 110 - Capital; Superannuation Prudential Practice Guide - SPG 200 - Risk Management; Superannuation Prudential Practice Guide - SPG 230 - Adequacy of Resources; and Superannuation Prudential Practice Guide - SPG 520 - Fitness and Propriety.

APRA deputy chairman Ross Jones said the four guides outline what APRA regards as sound practice in these areas of a superannuation trustee's operations.

"The release of this consolidated guidance to superannuation trustees and their directors on capital, risk management, adequacy of resources and fitness and propriety is an important means to assist trustees in meeting their obligations," he said.

APRA confirmed the practices outlined in the four PPGs are not affected by the recommendations of the Cooper Review.

The regulator noted draft prudential practice guides on management of conflicts and reserving practices that were also issued for consultation in 2009 will be further reviewed subject to any government response to the Cooper review's recommendations on these subjects.

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