The Australian Prudential Regulation Authority (APRA) has proposed changes to improve how superannuation trustees manage financial resources to protect fund members from poor operational risk event outcomes.
In a discussion paper released today, APRA proposes to replace the existing Prudential Standard SPS 114 Operational Risk Financial Requirement (SPS 114) with enhanced obligations for trustees. The enhancements include widening the scope of permitted use of financial resources held to manage operational risks, reducing barriers to efficient use of these resources, and requiring trustees to adopt a more sophisticated risk-based approach to determining how much to hold.
A copy of the discussion paper is available on the APRA website at: Strengthening Financial Resilience in Superannuation
