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Status: Pending
March 2021

Consultation on Prudential Standard SPS 250 Insurance in Superannuation

This page contains information on APRA's consultation on Prudential Standard SPS 250 Insurance in Superannuation (SPS 250).

January 2021

On 20 January 2021, APRA released for consultation a revised draft Prudential Standard SPS 250 Insurance in Superannuation (SPS 250) and a draft Prudential Practice Guide SPG 250 Insurance in Superannuation (SPG 250). 

The key proposed changes to the standard address two recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, regarding independent certification of related party insurance arrangements and priority and privilege arrangements, and that the rules for status attribution for a beneficiary are fair and reasonable. Additional proposed changes reflect recommendations by Government for trustees to facilitate easy opt-out of insurance by superannuation members, and to ensure that premiums don’t inappropriately erode members’ retirement income. 

APRA is re-consulting on draft SPS 250, following queries raised and guidance sought in response to the November 2019 consultation. Draft SPS 250 has been updated in response to feedback and draft SPG 250 provides guidance on the new proposed requirements. 

The revised draft SPS 250 is planned to commence on 1 January 2022. 

Submissions on this consultation will be received until 5 March 2021. APRA intends to finalise the revised SPS 250 and SPG 250 in mid-2021. 

The consultation letter, clean and marked-up versions of the draft prudential standard, and a marked-up version of the draft prudential practice guide, can be found below:

Letter

Proposed revisions to Prudential Standard SPS 250 and Prudential Guidance SPG 250 Insurance in Superannuation

Prudential Standard

Published 20 January 2021

Published 20 January 2021

Prudential Practice Guide

Published 20 January 2021

Submissions

The following submissions were received in response to the November 2019 consultation:

November 2019

On 25 November 2019, APRA released for consultation its proposed revisions to SPS 250, which are aimed at improving superannuation member outcomes by helping trustees select the most appropriate policies for their members, and monitor their ongoing relationships with insurers.

The proposed revisions also implement recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Submissions on this consultation will be received until 3 February 2020. 

The consultation letter and the clean and marked-up versions of the draft prudential standard can be found below:

Letter

Proposed revisions to Prudential Standard SPS 250 Insurance in Superannuation 

Prudential Standard

Note on submissions

It is APRA's policy to publish all submissions on the APRA website unless the respondent specifically tells APRA in writing that all or part of the submission is to remain confidential. An automatically generated confidentiality statement in an email does not satisfy this purpose. If you would like only part of your submission to be confidential, you should provide this information marked as 'confidential' in a separate attachment.