Proposed Revisions to Prudential Standard SPS 250 Insurance in Superannuation and Accompanying Guidance
The submission to the Australian Prudential Regulation Authority (APRA) in relation to the proposed updated revisions to Prudential Standard SPS 250 Insurance in Superannuation (SPS 250) and the proposed revisions to Prudential Guidance SPG 250 Insurance in Superannuation (SPG 250) was prepared by the Superannuation Committee of the Legal Practice Section.
APRA’s revisions to SPS 250 are directed to addressing:
- two specific recommendations (4.14 and 4.15) of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission); and
- APRA’s concerns regarding consideration of whether or not the cost of insurance is inappropriately eroding the retirement incomes of beneficiaries, and the ease by which beneficiaries can opt out of insurance arrangements.
APRA released a revised SPS 250 for consultation in November 2019 (Nov19 consultation), and has now updated those revisions (Jan21 update) and released specific guidance through proposed revisions to SPG 250.
You can read the full submission below.