Superannuation Industry (Supervision) Act 1993

APRA may determine (in writing) standards (prudential standards) relating to prudential matters that must be complied with by:

all RSE licensees of registrable superannuation entities; or

the connected entities of all RSE licensees of registrable superannuation entities; or

a specified class of RSE licensees of registrable superannuation entities; or

a specified class of connected entities of RSE licensees of registrable superannuation entities; or

one or more specified RSE licensees of registrable superannuation entities; or

one or more specified connected entities of RSE licensees of registrable superannuation entities.

A prudential standard may impose different requirements to be complied with:

by different classes of RSE licensees of registrable superannuation entities or connected entities of RSE licensees of registrable superannuation entities; or

in different situations; or

in respect of different activities.

Without limiting the prudential matters in relation to which APRA may determine a prudential standard, a prudential standard may require the following entities to ensure that the entity’s connected entities (or particular connected entities), or the entity and the entity’s connected entities (or particular connected entities), collectively satisfy particular requirements:

each RSE licensee of a registrable superannuation entity;

each RSE licensee of a registrable superannuation entity included in a specified class of RSE licensees;

a specified RSE licensee of a registrable superannuation entity;

each of 2 or more RSE licensees of registrable superannuation entities.

A prudential matter is a matter relating to:

the conduct by an RSE licensee of a registrable superannuation entity of the affairs of the registrable superannuation entity, or the affairs of a connected entity of the RSE licensee, in such a way as to:

protect the interests of the beneficiaries of the registrable superannuation entity; or

meet the reasonable expectations of the beneficiaries of the registrable superannuation entity; or

the conduct by a connected entity of an RSE licensee of a registrable superannuation entity of the affairs of the connected entity in such a way as to:

protect the interests of the beneficiaries of the registrable superannuation entity; or

meet the reasonable expectations of the beneficiaries of the registrable superannuation entity; or

the conduct by an RSE licensee of a registrable superannuation entity of the affairs of the licensee in such a way as:

to keep itself in a sound financial position; or

not to cause or promote instability in the Australian financial system; or

the conduct by an RSE licensee of a registrable superannuation entity of the affairs of the registrable superannuation entity in such a way as not to cause or promote instability in the Australian financial system; or

the conduct by a connected entity of an RSE licensee of a registrable superannuation entity of the affairs of the connected entity in such a way as:

to keep itself in a sound financial position; or

not to cause or promote instability in the Australian financial system; or

the conduct by an RSE licensee of a registrable superannuation entity, or by a connected entity of such an RSE licensee, of the affairs of the licensee, the registrable superannuation entity, or any connected entity of the licensee, in such a way as to:

facilitate resolution of the RSE licensee; or

facilitate resolution of the registrable superannuation entity; or

facilitate resolution of the connected entity that is reasonably necessary to facilitate resolution of the RSE licensee; or

facilitate resolution of the connected entity that is reasonably necessary to facilitate resolution of the registrable superannuation entity; or

facilitate resolution of the connected entity that is reasonably necessary to protect the interests of the beneficiaries of the registrable superannuation entity; or

facilitate resolution of the connected entity that is reasonably necessary to meet the reasonable expectations of the beneficiaries of the registrable superannuation entity; or

the conduct by an RSE licensee of a registrable superannuation entity, or a connected entity of the RSE licensee, of any of its affairs that are relevant to the registrable superannuation entity with integrity, prudence and professional skill; or

the appointment of auditors and actuaries; or

the conduct of audits and actuarial investigations.

The prudential standards may provide for APRA to exercise powers and discretions under the standards, including but not limited to discretions to approve, impose, adjust or exclude specific prudential requirements in relation to the following:

a particular RSE licensee of a registrable superannuation entity;

a particular connected entity of an RSE licensee of a registrable superannuation entity;

specified RSE licensees of registrable superannuation entities;

specified connected entities of RSE licensees of registrable superannuation entities.

APRA may, in writing, vary or revoke a standard.

A standard referred to in paragraph (1)(e) or (f), or a variation of a standard referred to in those paragraphs, comes into force on the later of:

the day on which APRA satisfies subsection 34E(1) in relation to the standard or variation (obligation to give a copy to each RSE licensee and connected entity to which it applies); and

if APRA includes with the copy of the standard or variation a notice that the standard or variation will come into force on a later day—that later day.

The revocation of a standard referred to in paragraph (1)(e) or (f) comes into force on the later of:

the day on which APRA satisfies subsection 34E(2) in relation to the revocation (obligation to give notice of the revocation to each RSE licensee or connected entity to which the standard relates); and

the day specified in that notice as the day on which the revocation comes into force.

The following instruments made under this section are not legislative instruments:

a standard referred to in paragraph (1)(e) or (f);

an instrument varying or revoking a standard referred to in paragraph (1)(e) or (f).

Otherwise, an instrument made under this section is a legislative instrument.