Document ID: chunk:federal_register_of_legislation:F2022L00741:body:0:p2
Version: federal_register_of_legislation:F2022L00741
Segment Type: other
Provision Reference: 
Character Range: 2967–6148

superannuation entity (RSE) licensees (RSE licensees).1

    3.             Where an RSE licensee of a defined benefit fund is permitted to self-insure benefits, paragraphs 23 to 29 inclusive do not apply with respect to the self-insured benefits.2

    4.             This Prudential Standard commences on 1 July 2022 (effective date).

Interpretation

    5.             For the purposes of this Prudential Standard, 'insured benefits' means benefits that are made available to beneficiaries via3:

(a)          insurance acquired by an RSE licensee from a life company registered, or taken to be registered, under section 21 of the Life Insurance Act 1995 or a general insurance company or Lloyd's underwriter authorised, or taken to be authorised, under the Insurance Act 1973 (an insurer); or

(b)          insurance offered under an RSE licensee's self-insurance arrangements.

    For the purposes of this Prudential Standard, the activities described in paragraphs 5(a) and (b) are referred to as 'making insured benefits available' to beneficiaries.

    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;

   1 For the purposes of this Prudential Standard, 'RSE licensee' has the meaning given in section 10(1) of the SIS Act.

   2 Refer to Prudential Standard SPS 160 Defined Benefit Matters for additional requirements applying to RSE licensees that are permitted to self-insure insurance benefits and to regulation 4.07E(8) of the Superannuation Industry (Supervision) Regulations 1994 which exempts defined benefit funds, that self-insure on 1 July 2013, from the general prohibition on self-insurance (subject to certain conditions).

   3  For the purposes of this Prudential Standard, a reference to 'beneficiaries' is a reference to 'beneficiaries of   an RSE within the RSE licensee's business operations'.

(b)          a particular connected entity of an RSE licensee of an RSE;

(c)          specified RSE licensees of RSEs; or

(d)          specified connected entities of RSE licensees of RSEs.

RSE licensees that are part of a group4

    8.             Where an RSE licensee is part of a corporate group, and the RSE licensee utilises group policies or functions, the Board must approve the use of group policies and functions and must ensure that these policies and functions give appropriate regard to the RSE licensee's business operations and its specific requirements.5

Insurance management framework

    9.             An RSE licensee must have in place an insurance management framework to manage making insured benefits available to beneficiaries.

    10.         An RSE licensee's insurance management framework is the totality of systems, structures, policies, processes and people to manage making insured benefits available to beneficiaries.

    11.         An RSE licensee's insurance management framework must be appropriate to the