APRA has released three papers for consultation as the first part of its post-implementation review into the prudential framework on superannuation.
In 2013, the regulator introduced prudential and reporting standards to support improvements in the superannuation system’s operations as part of the Stronger Super reforms.
The reforms introduced MySuper, SuperStream, new measures for superannuation trustee board directors, and new requirements for SMSF service providers.
In a statement on Wednesday, APRA announced it is now in the process of reviewing those standards in order to discern whether they are still effective and viable.
One of the three papers released for consultation is a discussion paper that details the purpose of the review, as well as questions for consideration.
According to the discussion paper’s executive summary, the review aims to “determine whether the prudential and reporting standards (and related guidance material) have achieved their objectives and remain fit for purpose”.
“The review is not intended to revisit the original policy intent or objectives of the reforms, and is not seeking to either weaken or strengthen the prudential framework.
“Rather, APRA wishes to assess whether the prudential framework is operating effectively and efficiently, and to identify and seek to address any unintended consequences or areas for improvement in the framework,” the discussion paper said.
APRA will seek stakeholder views on the effectiveness of the current framework; its practical impact; any areas that could be enhanced or costs reduced; and “the merits of potential changes to the framework to achieve this”.
The other two documents released for consultation are a pair of topic papers on governance and risk management, respectively. All three documents are available on the APRA website.
Four more topic papers will be released over the following months on the areas of financial requirements, operational risk and outsourcing, investments, insurance, and member flows and products, according to the statement.
APRA will also be hosting roundtables and “bilateral meetings” with stakeholders over the course of the review.
The consultation period will close on 26 September this year, with a final report on the post-implementation review due around early 2019.
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