The changes apply to Prudential Standard SPS 510 Governance and Prudential Practice Guide SPG 510, and follow a consultation carried out in 2015, APRA said.
“APRA has recently reviewed SPS 510 and SPG 510 and is now releasing final versions of both the prudential standard and PPG, reflecting changes to support better governance practices by RSE licensees,” it said.
The updated documents will require RSE licensees to “have in place a governance framework which sets out policies and procedures to support effective governance practices”, APRA said.
“Revised SPS 510 also requires RSE licensees to have in place policies on appointing, nominating and removing directors, director tenure and board size,” it said.
Additionally, SPS 510 has been modified to clarify that RSE licensees must define the director terms in office as well the maximum tenure period following industry feedback on the issue, the regulator said.
APRA said these changes were made to support the regulator’s commitment to “enhancing governance practices across the superannuation industry”, and will become effective as of 1 July 2017.
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