Proposed Revisions to Prudential Standard SPS 250 Insurance in Superannuation
The submission to the Australian Prudential Regulation Authority (APRA) in relation to the proposed revisions to Prudential Standard SPS 250 Insurance in Superannuation (SPS 250) was prepared by the Superannuation Committee of the Legal Practice Section.
APRA's proposed revisions to SPS 250 deal with four main matters:
- recommendation 4.14 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission) (additional scrutiny for related party engagements);
- recommendation 4.15 of the Royal Commission (status attribution to be fair and reasonable);
- APRA's concern that some registerable superannuation entity (RSE) licensees have not given adequate consideration to the covenant in paragraph 52(7)(c) of the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) (cost of insurance not to inappropriately erode the retirement income of beneficiaries); and
- ease of opt-out of insurance cover.
You can read the full submission below.