Get a plain-English read of Strategic objectives

Turn the raw legal text into a practical explanation grounded in Superannuation (prudential standard) determination No. 5 of 2024.

Strategic objectives

An RSE licensee must set specific strategic objectives for the sound and prudent management of its business operations that support achieving the outcomes the RSE licensee seeks for beneficiaries. The strategic objectives must be approved by the Board.[5]
The strategic objectives must be informed by an RSE licensee’s consideration of:

(a) the specific outcomes that the RSE licensee seeks to achieve for beneficiaries; (b) changes to the RSE licensee’s business operations that the RSE licensee considers, consistent with paragraph 14 of this Prudential Standard, are likely to improve outcomes for beneficiaries or the sound and prudent management of its business; (c) the RSE licensee’s risk appetite statement; (d) the strategies formulated pursuant to sections 52(2)(i), 52(6)(a), 52(7)(a), 52(8)(a) and 52(8A)(a) of the SIS Act; (e) the financial resources deemed necessary to cover the operational risk that relates to the RSE under section 52(8)(b) of the SIS Act; (f) the most recent business performance review; (g) the duty to act in the best financial interests of beneficiaries; and (h) the sole purpose test.
An RSE licensee must ensure its retirement income strategy is subject to review of its appropriateness, effectiveness and adequacy at least every three years.[6]