{"id":"F2024L00636","name":"Superannuation (prudential standard) determination No. 2 of 2024","slug":"superannuation-prudential-standard-determination-no-2-of-2024","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":105235,"registerId":"commonwealth-F2024L00636-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Authority","sectionType":"part","heading":"Authority","content":"# Authority\n\n1. This Prudential Standard is made under section 34C of the Superannuation Industry (Supervision) Act 1993 (SIS Act).","sortOrder":0},{"sectionNumber":"Application and commencement","sectionType":"part","heading":"Application and commencement","content":"# Application and commencement\n\n2. This Prudential Standard applies to all registrable superannuation entity (RSE) licensees (RSE licensees).[\\[1\\]](#_ftn1)\n\n3. This Prudential Standard includes requirements that apply to the functions and duties of an RSE auditor for the purposes of section 35AC(3) of the SIS Act.[\\[2\\]](#_ftn2)\n\n4. This Prudential Standard commences on 30 June 2024.","sortOrder":1},{"sectionNumber":"Interpretation","sectionType":"part","heading":"Interpretation","content":"# Interpretation\n\n5. Where this Prudential Standard provides for APRA to exercise a power or discretion, the power or discretion is to be exercised in writing.","sortOrder":2},{"sectionNumber":"Adjustments and exclusions","sectionType":"part","heading":"Adjustments and exclusions","content":"# Adjustments and exclusions\n\n6. APRA may adjust or exclude a specific requirement in this Prudential Standard in relation to:\n\n(a) a particular RSE licensee of an RSE; or\n\n(b) specified RSE licensees of RSEs.","sortOrder":3},{"sectionNumber":"Previous exercise of discretion","sectionType":"part","heading":"Previous exercise of discretion","content":"# Previous exercise of discretion\n\n7. An RSE licensee must contact APRA if it seeks to place reliance, for the purposes of complying with this Prudential Standard, on an exercise of discretion by APRA made under a previous version of this Prudential Standard.","sortOrder":4},{"sectionNumber":"Obligations of RSE licensees — RSE audit","sectionType":"part","heading":"Obligations of RSE licensees — RSE auditor appointment","content":"# Obligations of RSE licensees – RSE auditor appointment\n\n8. An RSE licensee must appoint an RSE auditor for each RSE within the RSE licensee’s business operations.[\\[3\\]](#_ftn3)\n\n9. Where an RSE licensee is a member of a group[\\[4\\]](#_ftn4), the auditor engaged by that group may also be appointed as the RSE auditor provided that auditor meets all relevant requirements of this Prudential Standard, Prudential Standard SPS 510 Governance (SPS 510) and, if applicable, Part 2M.4 of the Corporations Act 2001 (Corporations Act).[\\[5\\]](#_ftn5)\n\n10. An RSE licensee must ensure that the terms of engagement of the RSE auditor are set out in a legally binding contract between the RSE licensee and the RSE auditor. The RSE auditor must comply with terms of engagement that:\n\n(a) require the RSE auditor to fulfil the roles and responsibilities of the RSE auditor in the manner specified in this Prudential Standard;\n\n(b) require the RSE auditor, in meeting their role and responsibilities, to comply with relevant standards and guidance statements issued by the Auditing and Assurance Standards Board (AUASB) (relevant AUASB standards and guidance); and\n\n(c) refer the RSE auditor to the relevant provisions in the SIS Act and the Corporations Act.[\\[6\\]](#_ftn6)\n\n11. An RSE licensee must use all reasonable endeavours to:\n\n(a) ensure that the RSE auditor complies with the terms of engagement referred to in paragraph 10; and\n\n(b) assist the RSE auditor in being fully informed of all prudential requirements applicable to the RSE licensee.[\\[7\\]](#_ftn7)\n\n12. An RSE licensee must ensure that the RSE auditor has access to all data, information, reports and staff in respect of the RSE licensee’s business operations that the RSE auditor reasonably believes necessary to fulfil their role and responsibilities under the SIS Act, the Corporations Act (if applicable) and this Prudential Standard. This must include access to the Board of the RSE licensee (the Board)[\\[8\\]](#_ftn8), Board Audit Committee, internal auditor(s) and any information APRA has provided to the RSE licensee, as required by the RSE auditor.","sortOrder":5},{"sectionNumber":"Obligations of RSE licensees — fitness a","sectionType":"part","heading":"Obligations of RSE licensees — fitness and propriety of RSE auditors","content":"# Obligations of RSE licensees – fitness and propriety of RSE auditors\n\n13. As applicable, an RSE licensee must ensure that an individual RSE auditor or a lead auditor[\\[9\\]](#_ftn9):\n\n(a) is not disqualified under section 130D of the SIS Act;\n\n(b) satisfies the eligibility criteria in Prudential Standard SPS 520 Fit and Proper (SPS 520);\n\n(c) is a fit and proper person in accordance with the RSE licensee’s Fit and Proper Policy as required by SPS 520; and\n\n(d) satisfies the auditor independence requirements in SPS 510.\n\n14. As applicable, an RSE licensee must ensure that an RSE audit firm or an RSE audit company[\\[10\\]](#_ftn10):\n\n(a) is not disqualified under section 130EA of the SIS Act; and\n\n(b) satisfies the independence requirements in SPS 510.","sortOrder":6},{"sectionNumber":"Responsibilities of the RSE auditor - re","sectionType":"part","heading":"Responsibilities of the RSE auditor - reporting","content":"# Responsibilities of the RSE auditor - reporting\n\n22. The auditor’s report, which must be prepared by the RSE auditor, must, at a minimum, provide:\n\n(a) reasonable assurance addressing:\n\n(i) the information, relating to each RSE, required under the reporting standards made by APRA under the Financial Sector (Collection of Data) Act 2001 (FSCOD Act) that are identified in Attachment A as requiring reasonable assurance;\n\n(ii) compliance with the legislative provisions that are identified in Attachment B and any additional conditions APRA has imposed on the RSE licensee’s RSE licence under section 29EA of the SIS Act; and\n\n(iii) the annual financial statements for each RSE that is a SAF, prepared in accordance with relevant Australian Accounting Standards issued by the Australian Accounting Standards Board; and\n\n(b) limited assurance addressing:\n\n(i) the information, relating to each RSE, required under the reporting standards made by APRA under the FSCOD Act that are identified in Attachment A as requiring limited assurance;\n\n(ii) the RSE licensee’s systems, procedures and internal controls that are designed to ensure that the RSE licensee has complied with all applicable prudential requirements, has provided reliable data to APRA as required under the reporting standards made under the FSCOD Act, and has operated effectively throughout the year of income; and\n\n(iii) the RSE licensee’s compliance with its risk management framework required under SPS 220.\n\nFor the purposes of this Prudential Standard, ‘reasonable assurance’ and ‘limited assurance’ are defined in accordance with relevant AUASB standards and guidance.\n\n23. An RSE auditor must modify the opinion contained in the auditor’s report for breaches of any laws specified in paragraph 22 which, in the RSE auditor’s professional opinion, are material. In forming an opinion as to whether a breach is material, the RSE auditor must refer to relevant AUASB standards and guidance.\n\n24. When preparing a report required under the SIS Act or this Prudential Standard (whether as part of a routine or special purpose engagement), an RSE auditor must:\n\n(a) do so on the basis that APRA may rely upon the report in the performance of its functions under the SIS Act; and\n\n(b) exercise independent judgement and not place sole reliance on work performed by APRA.\n\n25. An RSE auditor must retain all working papers and other documentation in relation to an engagement under this Prudential Standard for a period of at least seven years after the end of year of income.[\\[12\\]](#_ftn12) APRA may require the RSE auditor to provide the working papers and other documentation to APRA.","sortOrder":8},{"sectionNumber":"Other responsibilities of the RSE licens","sectionType":"part","heading":"Other responsibilities of the RSE licensee","content":"# Other responsibilities of the RSE licensee\n\n26. An RSE licensee must bear the costs of preparing and submitting reports, documents and other material required by this Prudential Standard.\n\n27. An RSE licensee must facilitate meeting arrangements requested by APRA, including ensuring attendance by the individual RSE auditor or lead auditor, the internal auditor (where applicable) and, where an RSE licensee is part of a group, responsible persons from the head entity of the group.","sortOrder":9},{"sectionNumber":"Special purpose engagements","sectionType":"part","heading":"Special purpose engagements","content":"# Special purpose engagements\n\n28. APRA may require an RSE licensee to engage an auditor, who may be the existing RSE auditor or another auditor as specified by APRA, to provide a report on a particular aspect of the RSE licensee’s business operations, compliance with prudential requirements or the RSE licensee’s risk management framework.\n\n29. An auditor engaged for a special purpose engagement must provide limited assurance on the matters upon which the auditor is required to report unless otherwise determined by APRA and advised to the RSE licensee in writing.\n\n30. Unless otherwise determined by APRA, an auditor engaged for a special purpose engagement must submit, within three months of the date of the notice commissioning the report, the auditor’s report simultaneously to APRA and to the Board.\n\n31. An auditor must modify the report referred to in paragraph 28 for breaches of laws relating to the matters upon which the auditor is required to report which, in the auditor’s professional opinion, are material. In forming an opinion as to whether a breach is material, the auditor must refer to relevant AUASB standards and guidance.","sortOrder":10},{"sectionNumber":"Attachment A - Content of auditor’s repo","sectionType":"part","heading":"Attachment A - Content of auditor’s report: information required under reporting standards made by APRA","content":"## Attachment A - Content of auditor’s report: information required under reporting standards made by APRA\n\n1. Subject to paragraph 2 of this Attachment, for the purposes of paragraph 22(a)(i) and 22(b)(i) of this Prudential Standard, the auditor’s report must address the information in the following reporting standards on the basis specified below in relation to each listed reporting standard[\\[13\\]](#_ftn13):\n\n```html\n

Reporting standard

Level of assurance

(a)

Reporting Standard SRS 114.1 Operational Risk Financial Requirement

Reasonable

(b)

Reporting Standard SRS 320.0 Statement of Financial Position

Reasonable

(c)

Reporting Standard SRS 330.0 Statement of Financial Performance

Reasonable

(d)

Reporting Standard SRS 533.0 Asset Allocation (in respect of MySuper lifecycle investment options only)

Limited

(e)

Reporting Standard SRS 550.0 Asset Allocation (Table 1, columns 1-5 and 9-12 of Reporting Form SRF 550.1 Investments and Currency Exposure only)

Reasonable

(f)

Reporting Standard SRS 602.0 Wind-up[14]

Reasonable

(g)

Reporting Standard SRS 706.0 Fees and Costs Disclosed (in respect of MySuper investment options only)

Limited

(h)

Reporting Standard SRS 800.0 Financial Statements[15]

Reasonable

(i)

Reporting Standard SRS 801.0 Investments and Investment Flows[16]

Reasonable

\n```\n\n2. In place of the reporting standards listed in this attachment, the auditor’s report for an RSE that has wound up must address the information in Reporting Standard SRS 602.0 Wind-up (SRS 602.0), plus the information in the additional reporting standards identified in SRS 602.0, on a reasonable assurance basis.","sortOrder":11},{"sectionNumber":"Attachment B - Content of auditor’s repo","sectionType":"part","heading":"Attachment B - Content of auditor’s report: compliance with legislative provisions","content":"## Attachment B - Content of auditor’s report: compliance with legislative provisions\n\n1. For the purposes of paragraph 22(a)(ii) of this Prudential Standard, the auditor’s report must address compliance, at a reasonable assurance level, with the following legislative provisions, to the extent that the provisions are applicable to the RSE licensee’s business operations:\n\n(a) sections 29VA, 35A, 65, 66, 67, 95, 97, 98, 99F, 101, 105, 106, 109, 117, 154 and 155(2) of the SIS Act;\n\n(b) regulations 3.10, 5.08, 6.17, 7.04, 7.05, 9.09, 9.14, 13.14, 13.17 and 13.17A of the Superannuation Industry (Supervision) Regulations 1994;\n\n(c) sections 1012B, 1012F, 1012H(2), 1017B(1), 1017B(5), 1017D(1), 1017D(3A), 1017E(2), 1017E(3) and 1017E(4) of the Corporations Act; and\n\n(d) regulations 7.9.07R, 7.9.07S, 7.9.07T, 7.9.07V and 7.9.07W of the Corporations Regulations 2001.","sortOrder":12}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"On its face, the instrument applies broadly to all RSE licensees and sets out auditor appointment, reporting and assurance obligations. The text itself does not indicate a narrowing or expansion of the population covered; it establishes comprehensive auditor duties and APRA discretion without showing a change of scope from any prior instrument within this document."},"complexity_factors":["Cross-references to multiple statutes and prudential standards (SIS Act, Corporations Act, SPS 510, SPS 520) increase legal and compliance complexity (see paras 1, 10(b), 13–14).","Dual assurance regimes: specified items require either 'reasonable' or 'limited' assurance and must follow AUASB standards, creating differentiated audit scopes (paras 22–23; Attachment A).","Detailed list of APRA reporting standards and legislative provisions to be covered in the auditor's report (Attachment A and Attachment B) requires mapping between reporting returns and audit procedures.","APRA discretion to adjust or exclude requirements in writing for specific RSEs or groups adds administrative uncertainty and case-by-case variability (para 6).","Operational requirements for appointment, contractual terms, access to information, and retention of working papers for seven years impose procedural and record-keeping burdens on licensees and auditors (paras 8–12, 25).","Group arrangements and options to produce single or combined reports for multiple RSEs/SAFs introduce complexity in scoping and allocation of audit responsibilities (paras 9, 19–21).","Special purpose engagements and APRA-commissioned reports with specified timelines and assurance levels create potential additional ad hoc workload (paras 28–31).","Reporting delivery options and timing (lodgement with ASIC or APRA, three-month deadlines) require coordination between corporate reporting and prudential reporting cycles (paras 16–18)."],"plain_english_summary":"This Prudential Standard requires every registrable superannuation entity (RSE) licensee to appoint and contract with an RSE auditor, give that auditor full access to records and boards, and obtain annual auditor’s reports that provide specified reasonable or limited assurance on APRA reporting and compliance with listed laws. APRA may vary requirements in writing. RSE licensees pay the costs and must ensure auditors meet fit-and-proper and independence rules (SPS 520 / SPS 510). It commences 30 June 2024."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation maintains its original scope focused on RSE auditor appointment, fitness/propriety, and reporting requirements. While it incorporates references to newer reporting standards and prudential standards, this represents normal regulatory evolution rather than scope creep. The core purpose — establishing auditor obligations for superannuation funds — remains unchanged from previous versions."},"complexity_factors":["Extensive cross-referencing to other prudential standards (SPS 510, SPS 520, SPS 220) and legislation (SIS Act, Corporations Act, FSCOD Act)","Multiple defined terms requiring footnote references (RSE licensee, RSE, SAF, lead auditor, etc.) — 16 footnoted definitions visible","Dual assurance framework requiring auditors to distinguish between 'reasonable assurance' and 'limited assurance' based on AUASB standards","Conditional logic for different entity types: separate rules for SAFs vs other funds, group structures vs standalone entities, and wound-up funds","Nested compliance requirements in Attachments A and B listing specific reporting standards and legislative provisions by section number","Discretionary powers allowing APRA to adjust, exclude, or require special purpose engagements with variable timeframes","Multiple submission pathways (APRA vs ASIC) depending on fund type and structure"],"plain_english_summary":"This law sets binding rules for how superannuation trustees (RSE licensees) must appoint and contract independent auditors and how those auditors must assess funds. It requires clear access, independence, retention of workpapers, and a two-tier assurance approach (higher-confidence checks on finances and key risks, lighter checks on disclosures and controls), with APRA able to order or vary audits. It strengthens oversight to protect members’ retirement savings."}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-prudential-standard-determination-no-2-of-2024","history":"/api/acts/superannuation-prudential-standard-determination-no-2-of-2024/history","analysis":"/api/acts/superannuation-prudential-standard-determination-no-2-of-2024/analysis","conflicts":"/api/acts/superannuation-prudential-standard-determination-no-2-of-2024/conflicts","importantCases":"/api/acts/superannuation-prudential-standard-determination-no-2-of-2024/important-cases","documents":"/api/acts/superannuation-prudential-standard-determination-no-2-of-2024/documents"}}