The Australian Prudential Regulation Authority (APRA) has said that the revised Prudential Standard, SPS 250 Insurance in Superannuation, is expected to commence from 1 January 2022.
APRA said this as it commenced the second round of consultation on revisions to SPS 250.
The proposed changes are aimed at improving superannuation member outcomes by helping trustees select the most appropriate insurance policies for their members, and monitor their ongoing relationships with insurers.
The key changes to the standard address two recommendations from the financial services Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, and reflect government recommendations that trustees make it easier for members to opt-out of insurance, and ensure that premiums don’t inappropriately erode members’ retirement income.
APRA began consulting on proposed updates to SPS 250 in November 2019.
APRA has also released for consultation an updated version of Prudential Practice Guide SPG 250 Insurance in Superannuation (SPG 250), which contains further guidance on the new proposed requirements.
APRA intends to finalise both documents by the middle of the year.