APRA's views are outlined in the following document: Outsourcing
APRA expects that where these arrangements exist, an outsourcing agreement should be in place if the service provider retains control over the resources being utilised by the trustee. Where the control vests with the trustee APRA expects the arrangement to be dealt with under the adequacy of resources standards.
Auditors will be required to audit the Risk Management Statements and Risk Management Plans, which identify risks to the trustee and fund, and how they are to be managed. The auditor will be required to audit the implementation and effectiveness of the Risk Management Statements and Risk Management Plans annually. Matters identified by the auditor must be referred to the Trustees regardless of materiality. The whistle-blowing provisions have also been extended. Auditors are required to notify APRA at the same time as they notify trustees, of contraventions which may have occurred, may be occurring, or may occur in the future, that may affect the interests of members. See amendments to SIS ss.129 and 130 and new ss.130A and 130B.
APRA is currently consulting with the profession with a view to producing guidance notes.
1.5: Are material business activities of the Trustee that are performed by a subsidiary of the trustee, whether wholly owned or not, captured by the Outsourcing Standard?
APRA expects all material business activities of the trustee that are carried out by the subsidiary to satisfy the requirements of the outsourcing operating standard. This is consistent with the intent of the standard that outsourced functions are subject to appropriate due diligence, approval and on going monitoring and are not removed from the reach of the prudential regulator.
APRA's views are outlined in the following document: Outsourcing - limited liability
APRA's views are outlined in the following document: Custody of real property and other assets