Superannuation (prudential standard) determination No. 4 of 2024
Fit and Proper PolicyFit and Proper Policy
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Fit and Proper Policy
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An RSE licensee must prudently manage the risks that persons acting in responsible person positions[4] who are not fit and proper pose to the interests, or reasonable expectations, of beneficiaries, the financial position of the RSE licensee, any of its RSEs or connected entities, or in relation to any other relevant prudential matter.[5] To this end, an RSE licensee must have a documented policy relating to the fitness and propriety of its responsible persons that meets the requirements of this Prudential Standard (Fit and Proper Policy).
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The Fit and Proper Policy must be approved by the Board of an RSE licensee (the Board).[6]
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An RSE licensee must take all reasonable steps to ensure that each responsible person is aware of, and understands, the provisions of its Fit and Proper Policy.
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The Fit and Proper Policy must form part of an RSE licensee’s risk management framework.[7]
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Nothing in this Prudential Standard prevents an RSE licensee from adopting and applying a group Fit and Proper Policy used by a connected entity, provided that the policy has been approved by the Board in accordance with paragraph 8 and meets the requirements of this Prudential Standard.