Fund Regulatory Updates

APRA moves on with insurance in super consultation

The Australian Prudential Regulation Authority (APRA) has started its second round of consultations regarding revisions to Prudential Standard SPS 250 Insurance in Superannuation (SPS 250). Changes ahead look at improving superannuation member outcomes by assisting trustees to choose the best insurance policies for members. Relationship monitoring will also be important.

There are two main recommendations from the Royal Commission being put into place here, with trustees making it easier for members to opt out of insurance, and ensure that premiums don’t unnecessarily erode retirement savings. The cutoff for submissions is 5 March 2021.

A letter outlining the consultation, the updated draft SPS 250 and draft SPG 250 are available on the APRA website at: Consultation on Prudential Standard SPS 250 Insurance in Superannuation.