All ARPA-regulated superannuation funds will have to be licenced under the Federal Government’s recently announced policy on superannuation. This brings the super funds into line with the banks, building societies, credit unions and insurance companies.

And it won’t be that easy to get that licence, according to APRA EGM Charles Littrell. He says there are three important questions APRA will ask super fund applicants during the licensing process. They will relate to risk management outsourcing arrangements and fit and proper operators. According to Mr Littrell, a “no” to any of these issues will at best delay and at worst finish a licence application.

Mr Littrell said APRA views the risk management plan as the “central document” in the application and ongoing supervision process. “This document must be lived with. In fact, material adherence to the plan will be an APRA requirement for ongoing licensing.”