Superannuation (prudential standard) determination No. 3 of 2012 - Prudential Standard SPS 231 - Outsourcing (Cth)

Superannuation (prudential standard) determination No. 3 of 2012

Prudential Standard SPS 231 Outsourcing

Superannuation Industry (Supervision) Act 1993

I, Ross Jones, delegate of APRA, under subsection 34C(1) of the Superannuation Industry (Supervision) Act 1993 (the Act), DETERMINE Prudential Standard SPS 231 Outsourcing in the form set out in the Schedule, which applies to all RSE licensees.

This instrument commences upon registration on the Federal Register of Legislative Instruments.

Dated: 15 November 2012

[signed]

Ross Jones Deputy Chair

Interpretation

In this instrument: APRA means the Australian Prudential Regulation Authority.

Federal Register of Legislative Instruments means the Register kept under the Legislative Instruments Act 2003. RSE licensee has the meaning given in section 10(1) of the Act.

Note 1 It is a condition imposed on all RSE licences that the RSE licensee and, if the RSE licensee is a group of individuals, each of the members of the group, must comply with the RSE licensee law [section 29E(1)(a)]. RSE licensee law includes the prudential standards [section 10(1)]. APRA may direct an RSE licensee to comply with a specified condition of its RSE licence by a specified time if APRA has reasonable grounds to believe that the RSE licensee has breached the condition [section 29EB]. A failure to comply with a direction may lead to cancellation of the RSE licence [section 29G] and may be an offence attracting a penalty of 60 penalty units [section 29JB].

Schedule

Prudential Standard SPS 231 Outsourcing comprises the 9 pages commencing on the following page.

Prudential Standard SPS 231

Outsourcing

Objectives and key requirements of this Prudential Standard

This Prudential Standard requires that all outsourcing arrangements involving material business activities entered into by an RSE licensee be subject to appropriate due diligence, approval and ongoing monitoring. All risks arising from outsourcing material business activities must be appropriately managed to ensure that the RSE licensee is able to meet its obligations to its beneficiaries.