APRA Shares Initial Observations on Superannuation Industry’s Preparedness for CPS 190

Finance

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The Australian Prudential Regulation Authority (APRA) has issued a letter to all registrable superannuation entity (RSE) licensees, sharing initial observations from its recent thematic review of the superannuation industry’s readiness for the upcoming Prudential Standard CPS 190 Recovery and Exit Planning (CPS 190). The new standard will take effect from 1 January 2025.

The letter highlights areas where the superannuation industry can enhance its understanding and preparedness to recover or execute an orderly exit during times of stress. It also provides opportunities for improvement and better practice examples, aiming to boost the industry’s resilience and ability to navigate challenging circumstances.

APRA, the prudential regulator of Australia’s financial services industry, supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders, and superannuation fund members. This includes banks, insurance companies, and most members of the superannuation industry. With the impending implementation of CPS 190, it is crucial for RSE licensees to stay informed and prepared for the new regulatory requirements.

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