Recognising the changing environment in which the superannuation industry operates,and the need for RSE licensees to have a stronger focus on member outcomes, APRA formally commenced Prudential review in early 2018 with the expectation that it would demonstrate progress by the industry in many areas, but would also highlight areas where further enhancement in industry practices was needed.

In particular, the review sought to determine whether the largely compliance-based approach to governance and risk management taken by industry prior to the prudential framework’s introduction had given way to an approach with a stronger focus on improving processes and practices in the best interests of superannuation members. Below we detail the summary of the review findings.

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