APRA Updates Validation Rules, Deems UK Margin Rules to be Equivalent
The Australian Prudential Regulation Authority (APRA) updated the lists of the Direct to APRA validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities. It also made minor change to CPS 226, which is the prudential standard on margin and risk mitigation requirements for non-centrally cleared derivatives.
APRA has added the UK’s Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) to the list of foreign regulators in Attachment D of CPS 226, whose margin requirements are eligible for substituted compliance with the margin requirements in CPS 226. The amendment was made after the APRA assessed that the PRA and FCA’s new margin requirements are equivalent to those set out in CPS 226. The amendment will allow APRA-regulated entities to rely on UK rules when transacting with counterparties that are subject to the new UK margining rules. APRA published a revised version of CPS 226, incorporating these amendments, which will come into effect on April 18, 2022.
Related Links
- Notification on Validation and Derivation Rules
- Updated Validation Rules (XLSX)
- Updated Derivation Rules (XLSX)
- Letter on Amendments to CPS 226
- Final CPS 226 (PDF)
Keywords: Asia Pacific, Australia, UK, Banking, Basel, Validation Rules, Reporting, D2A, CPS 226, Equivalence Regime, Initial Margin, Derivatives, APRA, FCA, PRA
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
FDIC Publishes Draft Principles on Climate-Related Financial RisksRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.