Superannuation (prudential standard) determination No. 5 of 2024
Business planBusiness plan
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Business plan
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An RSE licensee must create and maintain a written rolling plan, of at least three years’ duration, that covers the entirety of the RSE licensee’s business operations (business plan). The business plan must be approved by the Board and set out the RSE licensee’s approach for implementing and delivering on its strategic objectives.
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An RSE licensee’s business plan must specify:
(a) the key initiatives it will undertake to achieve the RSE licensee’s strategic objectives, including for each initiative, the expected cost, how it will be funded and the expected results;
(b) where an RSE licensee has decided to undertake a transfer of beneficiaries, remedial action or other recovery or exit activities, how this decision will be implemented. This includes, where necessary, adjusting key strategic initiatives and maintaining business operations during implementation.
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An RSE licensee must be able to demonstrate how the business plan reflects the RSE licensee’s view of its current, and expected, level of financial resources, informed by[7]:
(a) financial projections that demonstrate the ongoing financial soundness of the RSE licensee’s business operations, including under different potential scenarios, for at least the term of the business plan; and (b) key assumptions used in the required financial projections and how these assumptions take into account the material risks identified under the risk management framework.
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The business plan must be updated annually having regard to the results of the most recent business performance review and ongoing monitoring. The annual updates to the business plan must incorporate changes to the RSE licensee’s business operations that the RSE licensee considers are likely to improve outcomes for beneficiaries or the sound and prudent management of its business operations including, but not limited to, changes arising from recovery and exit planning activities required under Prudential Standard CPS 190 Recovery and Exit Planning or changes arising from remedial actions or transfer planning required under this Prudential Standard.