Document ID: chunk:federal_register_of_legislation:F2019L01577:body:0:p2
Version: federal_register_of_legislation:F2019L01577
Segment Type: other
Provision Reference: 
Character Range: 2920–6170

in relation to a pooled superannuation trust.[2]
4.             For the purposes of this Prudential Standard, a reference to the 'Board' is to be read as a reference to the Board of directors (Board) or group of individual trustees of an RSE licensee.[3]
5.             This Prudential Standard commences on 1 January 2020.

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 a registrable superannuation entity;
       (b)          a particular connected entity of an RSE licensee of a registrable superannuation entity;
       (c)          specified RSE licensees of registrable superannuation entities; or
       (d)          specified connected entities of RSE licensees of registrable superannuation entities.

Strategic objectives
8.             The Board must approve strategic objectives for an RSE licensee's business operations that support achieving the outcomes the RSE licensee seeks for beneficiaries and the sound and prudent management of the RSE licensee's business operations.[4]
9.             The strategic objectives must be specific and measurable and based on an RSE licensee's consideration of:
       (a)          the outcomes that the RSE licensee seeks to achieve for beneficiaries;
       (b)          the RSE licensee's risk appetite statement;
       (c)          the strategies formulated pursuant to sections 52(2)(i), 52(6)(a), 52(7)(a) and 52(8)(a) of the SIS Act;
       (d)          the financial resources deemed necessary to cover the operational risk that relates to the RSE under section 52(8)(b) of the SIS Act;
       (e)          the most recent business performance review[5]; and
       (f)           section 62 of the SIS Act ('the sole purpose test').

Business plan
    10.         An RSE licensee must maintain a written plan for its business operations that sets out its approach for implementing its strategic objectives (business plan).

    11.         An RSE licensee's business plan must be a rolling plan of at least three years' duration updated annually based on the results of the most recent business performance review. The business plan must cover the entirety of an RSE licensee's business operations and be approved by the Board.

    12.         An RSE licensee's business plan must, at a minimum, specify:

       (a)          the key initiatives it will undertake to achieve the RSE licensee's strategic objectives, including the expected results of each initiative;
       (b)          the financial projections over at least the next three years that demonstrate the ongoing financial soundness of the RSE licensee's business operations;
       (c)          the key assumptions that inform the RSE licensee's financial projections under paragraph (b) and how these assumptions take into account the material risks that have been identified under the risk management framework; and
       (d)          the key performance indicators that the RSE licensee will use to monitor its