Updated investment governance guidance for superannuation trustees

APRA has released updated guidance on investment governance for superannuation trustees for consultation. 

The guidance is designed to assist trustees in meeting their requirements under the recently strengthened Prudential Standard SPS 530 Investment Governance (SPS 530), which comes into effect on 1 January, 2023.

The draft practice guide includes new and additional guidance on the following: 

• The new requirements in SPS 530, including for liquidity management, stress testing and valuations practices; and 

• APRA’s expectations of how trustees will consider environmental, social and governance (ESG) risk factors as part of their overall investment risk management. 

APRA deputy chair Margaret Cole said the updated guidance is intended to drive improvements in the quality of investment governance at every stage of a fund’s investment strategy. 

“Many funds have grown in size and complexity and the intensity and quality of governance must keep pace,” she said. 

APRA is seeking feedback on the draft guidance. The consultation period closes on 17 March 2023.