APRA is updating Prudential Standard SPS 515 Strategic Planning and Member Outcomes (SPS 515) to drive better outcomes for superannuation members in areas such as trustee expenditure of member funds, management of financial resources, and the transfer of members in and out of funds.   

The reforms follow changes to the superannuation operating environment since SPS 515 came into effect in 2020, including continued industry consolidation and legislative change.  

APRA’s proposed reforms to SPS 515 aim to: 

  • Ensure expenditure requirements better align with the best financial interest duty and, for the retirement phase, to support the retirement income covenant. Under the reforms, trustees must be able to justify the purpose of expenditure relating to business operations;
  • Lift the bar on trustees’ management of financial resources. The draft SPS 515 seeks to ensure trustees maintain a prudent approach in areas such as fee setting and managing member-funded reserves; and
  • Improve management of risks to members being transferred across funds.  

Additionally, APRA has decided to retire its guidance circular on the sole purpose test following a review of SPS 515 and associated guidance.