Superannuation (prudential standard) determination No. 3 of 2019 (Cth)

Superannuation (prudential standard) determination No. 3 of 2019

Prudential Standard SPS 220 Risk Management

Superannuation Industry (Supervision) Act 1993

I, Heidi Richards, delegate of APRA:

(a) under subsection 34C(6) of the Superannuation Industry (Supervision) Act 1993 (the Act) REVOKE Superannuation (prudential standard) determination No. 2 of 2012, including Prudential Standard SPS 220 Risk Management made under that Determination; and

(b) under subsection 34C(1) of the Act DETERMINE Prudential Standard SPS 220 Risk Management, in the form set out in the Schedule, which applies to all RSE licensees.

This instrument commences on 1 January 2020.

Dated: 04 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 220 Risk Management comprises the document commencing on the following page.

Prudential Standard SPS 220

Risk Management

Objectives and key requirements of this Prudential Standard

This Prudential Standard establishes requirements for an RSE licensee to have systems for identifying, assessing, managing, mitigating and monitoring material risks that may affect its ability to meet its obligations to beneficiaries. These systems, together with the structures, policies, processes and people supporting them, comprise an RSE licensee's risk management framework.

The Board of an RSE licensee is ultimately responsible for having a risk management framework that is appropriate to the size, business mix and complexity of the RSE licensee's business operations and that enables the RSE licensee to implement risk management approaches that appropriately manage different types of risk. The risk management framework must also be aligned with the RSE licensee's business plan.