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Superannuation (prudential standard) determination No. 2 of 2019

Prudential Standard SPS 515 Strategic Planning and Member Outcomes

Superannuation Industry (Supervision) Act 1993

I, Heidi Richards, delegate of APRA, under subsection 34C(1) of the Superannuation Industry (Supervision) Act 1993 (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 January 2020.

Dated: 02 December 2019

[Signed]

Heidi Richards
Executive General Manager
Policy and Advice Division

Interpretation

      In this Determination:

APRA means the Australian Prudential Regulation Authority.

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

Schedule

Prudential Standard SPS 515 Strategic Planning and Member Outcomes comprises the document commencing on the following page.

Prudential Standard SPS 515

Strategic Planning and Member Outcomes
Objectives and key requirements of this Prudential Standard
The objective of this Prudential Standard is to ensure that an RSE licensee manages its business operations in a sound and prudent manner in order to achieve its strategic objectives, including rigorously assessing its performance and taking action to improve its operations consistent with its obligations under the SIS Act.
The key requirements of this Prudential Standard are that:

     * the Board approves strategic objectives that support it in achieving the outcomes it seeks for beneficiaries and the sound and prudent management of the RSE licensee's business operations;

     * the RSE licensee maintains a Board approved business plan that sets out the approach for implementation of the RSE licensee's strategic objectives;

     * the RSE licensee annually reviews its performance in achieving its strategic objectives and incorporates any actions to improve its performance in its business plan;

     * decisions to incur significant fund expenditure support the RSE licensee in achieving its strategic objectives and those decisions are monitored against their expected outcomes; and

     * the outcomes assessment required under section 52(9) of the SIS Act addresses the additional factors set out in this Prudential Standard.

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).[1]
3.             An RSE licensee is not required to comply with paragraphs 8 (only in relation to the Board being required to approve strategic objectives that support achieving outcomes for beneficiaries), 9(a), 15(a)(ii), 15(a)(iii), 15(c)(i), 16 (only in relation to outcomes for beneficiaries), 21, 22 and 23 inclusive 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