Superannuation (prudential standard) determination No. 5 of 2024
Management of reservesManagement of reserves
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Management of reserves
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An RSE licensee’s strategy for the prudent management of reserves must demonstrate the need for, and purpose of, each reserve in the RSE licensee’s business operations.[8] An RSE licensee’s reserving strategy must include:
(a) how each reserve is managed in the context of its purpose; and (b) an appropriate target amount or range for each reserve, including how and over what period the reserve is to be established and replenished in an equitable manner, with reference to different cohorts of beneficiaries, and intergenerational issues.
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An RSE licensee’s regular review of each reserve must ensure:
(a) the reserve remains appropriate to the RSE’s circumstances; and (b) there are adequate controls and procedures to ensure the reserve is used for the intended purpose.