Document ID: chunk:federal_register_of_legislation:F2024L00638:body:0:p2
Version: federal_register_of_legislation:F2024L00638
Segment Type: other
Provision Reference: 
Character Range: 2798–5772

made under section 34C 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) under the SIS Act.[1]
3.             All RSE licensees must comply with this Prudential Standard in its entirety, unless otherwise expressly indicated.
4.             This Prudential Standard specifies:
(a)          the fitness and propriety criteria for the purposes of certain provisions of the SIS Act[2]; and
(b)          the eligibility criteria for RSE auditors and RSE actuaries for the purposes of the SIS Act.[3]
5.             This Prudential Standard commences on 30 June 2024.

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.

Fit and Proper Policy
7.             An RSE licensee must prudently manage the risks that persons acting in responsible person positions[4] who are not fit and proper pose to the interests, or reasonable expectations, of beneficiaries, the financial position of the RSE licensee, any of its RSEs or connected entities, or in relation to any other relevant prudential matter.[5] To this end, an RSE licensee must have a documented policy relating to the fitness and propriety of its responsible persons that meets the requirements of this Prudential Standard (Fit and Proper Policy).
8.             The Fit and Proper Policy must be approved by the Board of an RSE licensee (the Board).[6]
9.             An RSE licensee must take all reasonable steps to ensure that each responsible person is aware of, and understands, the provisions of its Fit and Proper Policy.
10.         The Fit and Proper Policy must form part of an RSE licensee's risk management framework.[7]
11.         Nothing in this Prudential Standard prevents an RSE licensee from adopting and applying a group Fit and Proper Policy used by a connected entity, provided that the policy has been approved by the Board in accordance with paragraph 8 and meets the requirements of this Prudential Standard.

Responsible persons
12.         A responsible person of an RSE licensee is:
(a)          a director of the RSE licensee[8];
(b)          a secretary of the RSE licensee;
(c)          a senior manager of the RSE licensee;
(d)          an individual RSE auditor or a lead auditor, appointed to conduct an audit of an RSE for which the RSE licensee is trustee, or of any connected entity of the RSE licensee[9];
(e)          an RSE actuary who is appointed to perform an actuarial function under RSE licensee law[10]; and
(f)           a person who performs activities for a connected entity of the RSE licensee where those activities could materially affect the whole, or a substantial part, of the RSE licensee's business operations, or its financial standing, either directly or indirectly.
13.         A