Document ID: chunk:federal_register_of_legislation:F2024L00638:body:0:p1
Version: federal_register_of_legislation:F2024L00638
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Superannuation (prudential standard) determination No. 4 of 2024

Prudential Standard SPS 520 Fit and Proper

Superannuation Industry (Supervision) Act 1993

I, Clare Gibney, a delegate of APRA:
    (a) under subsection 34C(6) of the Superannuation Industry (Supervision) Act 1993 REVOKE Superannuation (prudential standard) determination No. 4 of 2013, including Prudential Standard SPS 520 Fit and Proper; and
    (b) under subsection 34C(1) of the Act, DETERMINE Prudential Standard SPS 520 Fit and Proper in the form set out in the Schedule, which applies to all RSE licensees.
This instrument commences on 30 June 2024.

Dated:  3 June 2024

Clare Gibney
Executive Director
Policy and 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 520 Fit and Proper

Objectives and key requirements of this Prudential Standard

This Prudential Standard sets out minimum requirements for RSE licensees in determining the fitness and propriety of individuals to hold positions of responsibility. Its objective is to ensure that an RSE licensee prudently manages the risks posed to its business operations by having persons acting in responsible positions who are not fit and proper.

The ultimate responsibility for ensuring the fitness and propriety of the responsible persons of an RSE licensee rests with its Board of directors.

Persons who are responsible for the management and oversight of an RSE licensee's business operations need to have appropriate skills, experience and knowledge, and act with honesty and integrity. These skills and qualities strengthen the protection afforded to beneficiaries and other stakeholders. To this end, RSE licensees need to prudently manage the risk that persons in positions of responsibility might not be fit and proper.

The key requirements of this Prudential Standard are:

                an RSE licensee must have and implement a Fit and Proper Policy that meets the requirements of this Prudential Standard;

                the fitness and propriety of a responsible person must generally be assessed prior to initial appointment and then re-assessed annually;

                an RSE licensee must take all prudent steps to ensure that a person is not appointed to, or does not continue to hold, a responsible person position for which they are not fit and proper;

                additional requirements must be met for RSE auditors and RSE actuaries; and

                certain information must be provided to APRA regarding responsible persons and the RSE licensee's assessment of their fitness and propriety.

Authority
     1. This Prudential Standard is 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