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Superannuation (prudential standard) determination No. 7 of 2012

Prudential Standard SPS 521 Conflicts of Interest

Superannuation Industry (Supervision) Act 1993

I, Ross Jones, delegate of APRA, under subsection 34C(1) of the Superannuation Industry (Supervision) Act 1993 (the Act), DETERMINE Prudential Standard SPS 521 Conflicts of Interest in the form set out in the Schedule, which applies to all RSE licensees.

This instrument commences on 1 July 2013.

Dated: 15 November 2012

[signed]

Ross Jones
Deputy Chair

Interpretation

      In this instrument:
APRA means the Australian Prudential Regulation Authority.
RSE licensee has the meaning given in section 10(1) of the Act.

Note 1 It is a condition imposed on all RSE licences that the RSE licensee and, if the RSE licensee is a group of individuals, each of the members of the group, must comply with the RSE licensee law [section 29E(1)(a)]. RSE licensee law includes the prudential standards [section 10(1)]. APRA may direct an RSE licensee to comply with a specified condition of its RSE licence by a specified time if APRA has reasonable grounds to believe that the RSE licensee has breached the condition [section 29EB]. A failure to comply with a direction may lead to cancellation of the RSE licence [section 29G] and may be an offence attracting a penalty of 60 penalty units [section 29JB].

Schedule

Prudential Standard SPS 521 Conflicts of Interest comprises the 6 pages commencing on the following page.

Prudential Standard SPS 521

Conflicts of Interest

Objectives and key requirements of this Prudential Standard

This Prudential Standard establishes requirements for the identification, avoidance and management of conflicts of duty and interest by an RSE licensee. These requirements are essential to ensure that an RSE licensee and its responsible persons meet legislative obligations in Part 6 of the Superannuation Industry (Supervision) Act 1993.

The Board of an RSE licensee is ultimately responsible for having a conflicts management framework that is appropriate to the size, business mix and complexity of the RSE licensee's business operations and which applies to the entirety of its business operations. The conflicts management framework must be approved by the Board.

The key requirements of this Prudential Standard are that an RSE licensee must also:

     * develop, implement and review a conflicts management policy that is approved by the Board;
     * identify all relevant duties and relevant interests; and
     * develop registers of relevant duties and relevant interests.

Authority
     1. This Prudential Standard is made under section 34C of the Superannuation Industry (Supervision) Act 1993 (SIS Act).

Application
    2.             This Prudential Standard applies to registrable superannuation entity (RSE) licensees (RSE licensees) under the SIS Act.[1]

    3.             All RSE licensees must comply with this Prudential Standard in its entirety, unless otherwise expressly indicated.

    4.