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Superannuation (prudential standard) determination No. 5 of 2024

Prudential Standard SPS 515 Strategic Planning and Member Outcomes

Superannuation Industry (Supervision) Act 1993

I, Clare Gibney, a delegate of APRA:
    (a) under subsection 34C(6) of the Superannuation Industry (Supervision) Act 1993 (the Act) REVOKE Superannuation (prudential standard) determination No. 2 of 2019, including Prudential Standard SPS 515 Strategic Planning and Member Outcomes made under that determination; and
    (b) under subsection 34C(1) of the Act, DETERMINE Prudential Standard SPS 515 Strategic Planning and Member Outcomes in the form set out in the Schedule, which applies to all RSE licensees.
This instrument commences on 1 July 2025.

    Dated:  29 July 2024

Clare Gibney
Executive Director
Policy & Advice Division

Interpretation

In this instrument:

APRA means the Australian Prudential Regulation Authority.

RSE licensee has the meaning given in section 10(1) of the Act.

Prudential Standard SPS 515

Strategic Planning and Member Outcomes
About this Prudential Standard
Prudential Standard SPS 515 Strategic Planning and Member Outcomes (SPS 515) is the core prudential standard in the business operations pillar of APRA's superannuation prudential framework. It requires an RSE licensee to manage its business operations in a sound and prudent manner to achieve the outcomes it seeks for beneficiaries, consistent with all legal duties and obligations of the RSE licensee, including the duty to act in the best financial interests of beneficiaries and the sole purpose test. Key requirements relate to setting strategic objectives, conducting business planning, financial resource management, performance monitoring, outcomes assessment and transfer planning.

Authority
     1. This Prudential Standard is made under section 34C and pursuant to section 29XA of the Superannuation Industry (Supervision) Act 1993 (SIS Act).

Application and commencement
2.             This Prudential Standard applies to all registrable superannuation entity (RSE) licensees (RSE licensees).[1]
3.             Paragraphs 33 to 43 only apply to an RSE licensee that is authorised, or was formerly authorised, to offer a class of beneficial interest in a regulated superannuation fund as a MySuper product.[2]
4.             An RSE licensee is not required to comply, in relation to a pooled superannuation trust[3], with:
       (a)          paragraph 8 (only in relation to the Board being required to approve strategic objectives that support achieving outcomes for beneficiaries);
       (b)          paragraphs 9(a), 9(b) and 9(g);
       (c)          paragraph 10;
       (d)          paragraphs 14 and 15;
       (e)          paragraphs 21 to 24 inclusive (only in relation to outcomes for beneficiaries and section 62 of the SIS Act ('the sole purpose test'));
       (f)           paragraphs 25 and 26(b) (only in relation to 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