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Superannuation - Part B Risk Management Statements

Thursday, 21 February 2002

Superannuation Circular No II.D.7 "Derivatives" contains guidelines for preparation of risk management statements by trustees of funds that use derivatives.

Over the past year APRA has received a number of enquiries as to whether it is mandatory for the RMS to contain the attestation in the terms set out in the Circular, or whether annual certification as to sufficiency and compliance is adequate.

APRA's requirement is for evidence of substantive satisfaction as to adequacy of, and ongoing compliance with, the Risk Management Statement (RMS).

APRA will not insist on use of the word "attest" but require that senior management, or - for an external investment manager - the Board of Directors:

  • has approved the RMS,
  • has stated (within the document itself) that they are satisfied as to its sufficiency,
  • monitors ongoing compliance, and
  • ensures the continued adequacy of the RMS.
S.G. Venkatramani,
General Manager
Diversified Institutions Division
Telephone: (02) 9210 3267

Merrie Hennessy
Manager, Technical
Telephone: (02) 6213 5290