On APRA's Radar

March 2015
Regulatory & Governance
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Helen Rowell's recent talk at CMSF about what APRA is currently seeing on its radar provides some valuable insight for the superannuation industry.

The current focus is on conflicts of interest and insurance management.

Approximately 40 funds that APRA reviewed were found to have conflicts management frameworks that were assessed as "vulnerable or weak".

Trustees who are facing an APRA review may wish to revisit their conflicts management policies (and the arrangements in place that underpin the policies).

In her talk, Helen also encouraged trustees to have a long, hard look at any related party arrangements they may have to ensure they are appropriately managed.

This would encompass arrangements with unions, employers, promoters, etc.

Other interesting messages include:

  • APRA expects trustees to be focused on "robust board and director performance assessments"
  • APRA is "disappointed" in the quality of remuneration disclosure and the consistency of disclosures on websites and reporting to APRA under the new reporting standard
  • APRA will be looking at how trustees undertake the "scale assessment"

Despite mentioning insurance management as an area of interest, not much was said on the topic. APRA will apparently release more details on the outcome of their reviews in the coming months.

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