ASFA and JANA unite to strengthen industry standards with Investment Manager Operational Risk Guidance Note ahead of APRA’s CPS230

27 November 2024

The Association of Superannuation Funds of Australia (ASFA) and JANA Investment Advisers (JANA) have announced they will lead an industry cross-collaboration to replace and uplift previous industry guidance around investment management operational due diligence. The new ASFA guidance note will provide vital support for superannuation funds as they prepare for APRA’s new standard, CPS230 Operational Risk Management, effective July 2025. This guidance may also be applicable to asset owners across other APRA-regulated industries.

Existing industry guidance on investment management operational due diligence has been a valued resource over many years, serving as a benchmark standard for APRA-regulated funds and their investment managers. Maintaining its relevance requires dedicated support in an evolving regulatory environment – in particular, the introduction of CPS230 represents a significant uplift to the regulatory requirements for operational risk management.

Recognising this, JANA has partnered with ASFA, collaborating with experts from both organisations and broader contributors to refresh and update the existing guidance for current regulatory requirements and evolving sector needs. Through elevating the guidance to reflect CPS230’s introduction, APRA-regulated funds will gain enhanced capabilities for overseeing an investment manager’s operational risk, preparing for disruptions, and handling third-party outsourcing, offering a uniform approach across the sector.

“ASFA is proud to steward the ASFA Investment Manager Operational Risk Guidance Note, in collaboration with JANA and other industry leaders, to maintain its essential role in operational risk management,” said Mary Delahunty, CEO of ASFA. “Our efforts are committed to aligning this framework with CPS230 to meet the evolving needs of Australian investors.”

“CPS230 marks a pivotal step in operational resilience across the industry,” said Jo Leaper, Head of Operational Consulting at JANA. “This enhanced guidance framework will support consistent risk management and raises industry standards across both APRA-regulated and non-regulated entities.”

Building a Unified Industry Approach

Success in advancing the ASFA Investment Manager Operational Risk Guidance Note depends on the collective efforts from stakeholders across the industry. The ASFA and JANA collaboration embodies this commitment to excellence, ensuring the guidance note will be a vital resource for industry best practices.

“Our efforts are driven by the shared goal of strengthening and elevating operational standards across the sector,” added Georgina Dudley, Chief Executive Officer, JANA Investment Advisers. “Partnering with ASFA underscores the power of collaboration, as operational risk management relies on the combined efforts of regulators, consultants, managers, and investors working in unison to achieve excellence.”

ASFA and JANA will provide an update on timing for release of the guidance note mid-Q1 next year.