APRA has released a draft of its Prudential Practice Guide SPG 223 Fraud Risk Management guide, which outlines “prudent practices” in relation to the management of fraud risk, and focuses on “current and emerging fraud risk factors” impacting on the superannuation industry.
APRA member Helen Rowell said the prudential regulator remains “focused on improving risk management” practices across the superannuation industry, including fraud risk management.
“Draft SPG 223 substantially updates and expands upon APRA’s existing fraud risk guidance, to continue to drive improved practices in this important area,” Ms Rowell said.
APRA said as part of the new superannuation prudential framework, supporting the government’s Stronger Super Reforms, it introduced Prudential Standard SPS 220 Risk Management in late 2012.
“Prudential Practice Guide SPG 220 Risk Management was subsequently released in 2013 to support the requirements set out in SPS 220,” a statement from APRA said.
“At that time, APRA foreshadowed it would update its existing guidance notes on the management of superannuation fraud risk, through the issue of a prudential practice guide,” the statement said.
“This aligns with APRA’s risk-based approach of providing up-to-date and practical guidance on matters that APRA-regulated entities may consider relevant in meeting the requirements of the prudential standards,” the regulator said.
APRA has invited submissions on draft SPG 223 up until 19 January 2015.
