To meet the Investment Standard, you must select, manage and monitor investments in a responsible way. This includes the investment of refundable deposits.
Who the Investment Standard applies to
This Standard applies to all non-government providers registered in category 6. It applies even if you don’t hold refundable deposits.
It doesn’t apply if you’re a:
- government or local government authority, including government multi-purpose service providers
- National Aboriginal and Torres Strait Islander Flexible Aged Care Program provider.
What’s required
To comply with this standard, you need to:
- develop and follow a written investment management strategy (IMS)
- show that you have an IMS
- make sure the staff who are responsible for developing and meeting the IMS have the right skills and experience
- regularly review and update your IMS. This is particularly important when:
- your organisation’s investment objectives change
- there are changes to the skills and experience requirements
- you identify new or developing risks.
An IMS is key to providing safe, high-quality services and protecting refundable deposits. It helps your organisation:
- manage financial risks
- build a financial buffer that is flexible and supports informed decision making in uncertain circumstances
- adapt quickly to changes as they happen.
Your IMS must consider:
- the type and complexity of your business
- the availability of surplus funds
- investments you already have
- your access to skills and advice for managing investments.
Having an IMS is evidence of compliance. Evidence includes:
- written policies and procedures
- documents describing financial governance responsibilities
- regular reports that show supervision and ongoing improvements
- position descriptions that clearly define roles and accountabilities
- references to the IMS in other policies and procedures.
You can use the Investment Standard checklist in the Investment Standard fact sheet to make sure your organisation meets this Standard.
More information
The Financial and Prudential Standards Guidance for Providers has more information about:
1. what your IMS should include
2. the role of key staff in investments.
Download the Investment Standard fact sheet.
Watch the Investment Standard video.
Read the legislation which outlines these requirements.
You can find a summary of the 3 standards in the new Financial and Prudential Standards poster.
