Energy Super easily meets APRA’s new
prudential standards
With efficient management procedures and Board members with extensive industry
experience, Energy Super has easily met the new prudential standards released by
the Australian Prudential Regulatory Authority (APRA).
APRA’s 12 new Prudential Standards for Superannuation are due to come into effect
on 1 July 2013 and are part of the Stronger Super reforms.
The new standards relate mostly to governance, risk management and investments
with a focus on the need for trustees to understand risks and not delegate their
responsibilities.
Energy Super CEO, Robyn Petrou says the new standards further support what the
Fund already does and what it will continue to do.
“Energy Super understands employers demand a fund which is up to the job of
helping them manage their obligations. They also know their employees work hard
for their money and need a super fund which is going to look after them and their
financial future,” she said.
“In recent years we have dedicated our attention to ensuring Energy Super has a
culture of continually improving what it does and how it operates, as we know this
will directly benefit our employer members and protect our employee members.”
Check out the table below for the new prudential standards and how Energy Super
meets them.
APRA’s 12 Prudential Standards for super
Prudential Standard
Governance
Fit and Proper
P
P
How Energy Super complies
A capable and knowledgeable Energy Super Board
manages funds decisively and prudently. It features
experienced directors who make decisions which are
in members’ best interests.
Energy Super ensures its operations are managed
by people who have appropriate skills, experience
and knowledge, and who act with honesty and
integrity.
P
Energy Super minimises risks by having all
outsourcing arrangements involving material
operations subject to appropriate due diligence,
approval and ongoing monitoring.
P
Energy Super protects its financial position and
increases its resilience through a whole-of-business
approach to business continuity management.
P
Energy Super has robust systems for identifying,
assessing, managing, mitigating and monitoring
material risks.
Audit and Related
Matters
P
Members benefit from Energy Super’s sound and
prudential management, assisted by independent
advice on the operations, financial position and risk
controls of the fund.
Investment
Governance
P
Members’ best interest forms the basis of Energy
Super’s sound investment governance framework.
Conflicts of Interest
P
Energy Super has a process for identifying, avoiding
and managing any conflicts of duty and interest,
ensuring legislative obligations are met.
Defined benefit
funding and solvency
P
Defined Benefit members have their entitlements
protected by a set of dedicated requirements.
P
Energy Super will maintain adequate financial
resources to address any potential losses arising
from operational risks.
P
Members’ insured benefits will be made available to
nominated beneficiaries because of Energy Super’s
insurance management framework .
P
Should members transition to MySuper, they are
protected by a regulated and staged process, and
prudent practices.
Outsourcing
Business continuity
management
Risk Management
Operational risk
financial requirement
Insurance in
superannuation
Transition to MySuper
Electricity Supply Industry Superannuation (Qld) Ltd (ABN 30 069 634 439 AFSL 224952) is the Trustee and issuer of Energy
Super (ABN 33 761 363 685). A Product Disclosure Statement (PDS) is available from energysuper.com.au/pds or by calling
1300 4 ENERGY (1300 436 374). Any advice contained in this article is general in nature and not specific to your particular
circumstances. You should consider your financial situation before acting on the advice.
Financial advice is provided by ESI Financial Services Pty Ltd (ABN 93 101 428 782, AFSL 224952), a wholly owned subsidiary
of the Trustee.