Superannuation (prudential standard) determination No. 1 of 2019

Overview

The Superannuation (prudential standard) determination No. 1 of 2019 was enacted to address the redundancy of Prudential Standard SPS 410 MySuper Transition, which was established to facilitate the transition of default superannuation amounts to MySuper products before 1 July 2017. Given that the transition period has concluded and all requirements of SPS 410 have been fulfilled by the relevant entities, this determination, issued by the Australian Prudential Regulation Authority (APRA) under section 34C(6) of the Superannuation Industry (Supervision) Act 1993, aims to revoke SPS 410. This legislative instrument is designed to streamline prudential standards by eliminating outdated requirements, ensuring that regulatory frameworks remain current and effective. The determination took effect upon registration on the Federal Register of Legislation.

Scope and Application

The Superannuation (prudential standard) determination No. 1 of 2019, made by the Australian Prudential Regulation Authority (APRA) under the Superannuation Industry (Supervision) Act 1993, serves to revoke the previously established Prudential Standard SPS 410 MySuper Transition. This determination applies to all Responsible Superannuation Entity (RSE) licensees who are responsible for managing registrable superannuation entities (RSEs) and their operations within the Australian superannuation industry. The revocation of SPS 410, which set out minimum processes for attributing all accrued default amounts to a suitable MySuper product before 1 July 2017, is made in light of the completed transition period and compliance by all relevant licensees. As such, the standard is now deemed redundant. The revocation has no implications on business, community organisations, or individuals, hence consultation was deemed unnecessary for this legislative instrument. This revocation is effective upon registration on the Federal Register of Legislation and is aligned with human rights as determined by the Statement of Compatibility provided in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Superannuation (prudential standard) determination No. 1 of 2019, issued by the Australian Prudential Regulation Authority (APRA), revokes the previously established Prudential Standard SPS 410 MySuper Transition (SPS 410). This determination was made under the authority granted by subsection 34C(1) of the Superannuation Industry (Supervision) Act 1993 (the Act). SPS 410 had been set to ensure that Registered Superannuation Entities (RSE) licensees followed minimum processes to attribute all accrued default amounts to a suitable MySuper product before 1 July 2017. Given that the transition period has concluded and the requirements have been fulfilled by all relevant RSE licensees, SPS 410 is now redundant and has been formally revoked. The revocation of SPS 410 is intended to streamline regulatory requirements and eliminate outdated standards that no longer serve a purpose. This determination ensures that RSE licensees are not burdened with unnecessary compliance measures that have already been met. APRA has determined that revoking SPS 410 will not adversely affect businesses, community organisations, or individuals, thus consultation was deemed unnecessary. The instrument is designed to maintain regulatory efficiency without impacting the operation of the superannuation industry. RSE licensees governed by this determination must ensure they have complied with the requirements of SPS 410 prior to its revocation. While the standard is now redundant, the processes and actions taken under SPS 410 should have already been completed by the relevant entities. RSE licensees must continue to adhere to all other applicable prudential standards and regulatory requirements as stipulated by APRA. The revocation does not impose any new obligations but ensures that outdated standards do not remain in force. There are no specific offences, penalties, or civil/criminal consequences outlined in this determination for non-compliance with the revoked standard, as it is now redundant. However, RSE licensees must ensure that all past actions under SPS 410 were performed in compliance with the law. Failure to comply with any prudential standard or regulatory requirement in the superannuation industry could result in enforcement actions by APRA, including fines, sanctions, or other regulatory measures under the Superannuation Industry (Supervision) Act 1993. It is essential for RSE licensees to maintain ongoing compliance with all relevant standards and regulations to avoid any adverse regulatory consequences.