Property 101: APRA releases enhanced governance requirements for superannuation trustees

APRA has released updated governance requirements for APRA-regulated superannuation trustees with a revised prudential standard and prudential practice guide on governance. 

The amendments to the prudential standard include requiring RSE licensees to have in place a governance framework, requirements for these policies to address the nomination, appointment and removal of directors, board renewal, director tenure limits and board size. 

The prudential practice guide has been updated to clarify APRA’s expectations regarding key governance practices, to support the new requirements set out in the prudential standard. 

Helen Rowell, APRA deputy chairman said APRA places significant importance on sound governance of the superannuation industry, and these refinements to the prudential framework support the ongoing evolution of governance practices across the superannuation industry.

Final SPS 510 will take effect on 1 July 2017, but APRA expects RSE licensees to consider the guidance in SPG 510 immediately.  

Further details of the requirements, including the final prudential standard and prudential practice guide can be found here.