In May this year, APRA released the findings of two thematic reviews into the superannuation industry, conducted over 2016 and 2017. APRA examined RSE licensees’ oversight and management of related party arrangements and, separately, governance practices in respect of board appointments, renewal and performance assessment.
Disability income insurance (DII), also known as income protection insurance, is a protective cover that provides replacement income to policyholders when they are unable to work due to illness or injury. DII offered to individuals outside of superannuation (individual DII) has been an area of heightened focus for APRA over the last 12 months due to its ongoing poor performance and adverse experience.
Obtaining a banking licence is a significant undertaking, requiring substantial time and resources to demonstrate the necessary capabilities and frameworks to run a sound and safe bank. To address this, APRA now provides companies seeking an ADI licence with the choice of two distinct routes: the established “direct route” and the new restricted route. APRA will provide the same level of guidance and engagement irrespective of licensing route, however different routes will suit different applicants.