Document ID: chunk:federal_register_of_legislation:F2024L00940:body:0:p2
Version: federal_register_of_legislation:F2024L00940
Segment Type: other
Provision Reference: 
Character Range: 2943–6217

outcomes for beneficiaries, the sole purpose test and promoting the financial interests of beneficiaries);
       (g)          paragraphs 27 to 29 inclusive;
       (h)          paragraphs 30 to 32 inclusive (in relation to outcomes to beneficiaries, the annual performance assessment and a transfer of beneficiaries)[4]; and
       (i)            paragraphs 33 to 43 inclusive.
5.             This Prudential Standard commences on 1 July 2025.

Interpretation
6.             Where this Prudential Standard provides for APRA to exercise a power or discretion, the power or discretion is to be exercised in writing.

Adjustments and exclusions
7.             APRA may adjust or exclude a specific requirement in this Prudential Standard in relation to:
       (a)          a particular RSE licensee of an RSE; or
       (b)          specified RSE licensees of RSEs.

Strategic objectives
8.             An RSE licensee must set specific strategic objectives for the sound and prudent management of its business operations that support achieving the outcomes the RSE licensee seeks for beneficiaries. The strategic objectives must be approved by the Board.[5]
9.             The strategic objectives must be informed by an RSE licensee's consideration of:
       (a)          the specific outcomes that the RSE licensee seeks to achieve for beneficiaries;
       (b)          changes to the RSE licensee's business operations that the RSE licensee considers, consistent with paragraph 14 of this Prudential Standard, are likely to improve outcomes for beneficiaries or the sound and prudent management of its business;
       (c)          the RSE licensee's risk appetite statement;
       (d)          the strategies formulated pursuant to sections 52(2)(i), 52(6)(a), 52(7)(a), 52(8)(a) and 52(8A)(a) of the SIS Act;
       (e)          the financial resources deemed necessary to cover the operational risk that relates to the RSE under section 52(8)(b) of the SIS Act;
       (f)           the most recent business performance review;
       (g)          the duty to act in the best financial interests of beneficiaries; and
       (h)          the sole purpose test.
    10.         An RSE licensee must ensure its retirement income strategy is subject to review of its appropriateness, effectiveness and adequacy at least every three years.[6]

Business plan
    11.         An RSE licensee must create and maintain a written rolling plan, of at least three years' duration, that covers the entirety of the RSE licensee's business operations (business plan). The business plan must be approved by the Board and set out the RSE licensee's approach for implementing and delivering on its strategic objectives.
    12.         An RSE licensee's business plan must specify:
       (a)          the key initiatives it will undertake to achieve the RSE licensee's strategic objectives, including for each initiative, the expected cost, how it will be funded and the expected results;
       (b)          where an RSE licensee has decided to undertake a transfer of beneficiaries, remedial action or other recovery or exit activities, how this decision will be implemented. This includes, where necessary, adjusting key strategic initiatives and maintaining business operations