APRA amends operational risk financial requirements for superannuation trustees

The Australian Prudential Regulation Authority (APRA) has amended the prudential requirements for superannuation trustees relating to operational risk financial requirements (ORFR) as set out in Prudential Standard SPS 114 Operational Risk Financial Requirement (SPS 114) and related guidance.

The changes aim to strengthen operational resilience by ensuring trustees can better access the financial resources held to meet the ORFR when needed and to maintain an appropriate level of reserving.

The key changes are to:

• clarify the purpose of the ORFR; 
• widen the allowable range of uses for the ORFR;
• introduce a clear and direct relationship with Prudential Standard CPS 230 Operational Risk Management (CPS 230); and 
• amend the APRA notification requirements to facilitate further use of the ORFR.

In response to industry feedback and to avoid unnecessary regulatory burden, APRA has also made changes to further simplify its guidance on the setting of the minimum ORFR target amount.

The amended SPS 114 will take effect from 1 July 2025. 

A copy of the consultation response paper and links to the updated standard and guidance are available on the APRA website at: Strengthening financial resilience in superannuation.