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APRA and ASIC release joint letter on the implementation of the retirement income covenant

Monday 7 March 2022

The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have issued a joint letter to all registrable superannuation entity (RSE) licensees on the implementation of a new retirement income covenant (the covenant).

The letter released today follows the Government’s legislative amendments to the Superannuation Industry (Supervision) Act 1993 to introduce the covenant, and it sets out APRA’s and ASIC’s expectations of RSE licensees in implementing new requirements for their members in response to the covenant. 

RSE licensees are required to formulate a retirement income strategy by 1 July 2022, and are expected to implement the strategy through a continuous improvement process over time.

The letter is available on the APRA website at: Implementation of retirement income covenant.

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The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $7.9 trillion in assets for Australian depositors, policyholders and superannuation fund members.