APRA Defers Commencement of Six Standards Due to COVID-19 Outbreak
In response to COVID-19 outbreak, APRA has announced new commencement dates for six prudential and reporting standards that have been finalized but are yet to fully come into effect. These standards are related to margining and risk mitigation for non-centrally cleared derivatives, information security, credit risk management, and associations with related entities. APRA will defer, by 12 months, the next two phase-in periods of initial margin requirements for non-centrally cleared derivatives as set out in CPS 226, in line with the joint decision of BCBS and IOSCO.
In relation to the CPS 234 on third-party arrangements transition provision, APRA will consider requests for a six-month extension by regulated entities on a case-by-case basis. Entities seeking an extension must advise APRA of the nature of their third-party arrangements and how they are monitoring the risks associated with these arrangements. The affected standards and their revised commencement dates have set out in the table below.
|
Industry |
Prudential Standard |
Initial Commencement Date |
Revised Commencement Date |
|---|---|---|---|
|
Cross-industry |
CPS226 Margining and Risk Mitigation for Non-Centrally Cleared Derivatives (phase-in of initial margin requirements) |
September 01,2020, 2021 |
September 01, 2021, 2022 |
|
CPS234 Information Security (third-party arrangements transition provision) |
July 01, 2020 |
Six month extension to January 01, 2021 available on a case-by-case basis |
|
|
Banking |
APS220 Credit Risk Management |
January 01, 2021 |
January 01, 2022 |
|
APS222 Associations with Related Entities ARS222.0 Exposures to Related Entities ARS222.2 Exposures to Related Entities – Step-in risk |
January 01, 2021 |
January 01, 2022 |
Additionally, the work on product responsibility under the Banking Executive Accountability Regime has now been subsumed into work on the Financial Accountability Regime, as mentioned in the Government’s proposal paper on Financial Accountability Regime. APRA intends to release further information on product responsibility when the Government consults on the exposure draft legislation and the implementation timeframe for the Financial Accountability Regime. APRA will formally amend the commencement dates for affected prudential and reporting standards in due course.
Related Link: Press Release
Keywords: Asia Pacific, Australia, Banking, COVID-19, Deadline Extension, Credit Risk, Derivatives, BEAR, Governance, Reporting, Cyber Risk, Third-Party Arrangements, BCBS, IOSCO, APRA
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.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Related Articles
EC Regulation Sets Out Standards for Reporting and Disclosure of MREL
EC published the Implementing Regulation 2021/763 that lays down implementing technical standards for supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities (MREL).
APRA Decides to Standardize Submission Date for Quarterly Reporting
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
ECB Working Group Publishes Recommendations on EURIBOR Fallbacks
The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).
Bundesbank Publishes Supporting Documentation for Reporting by Banks
Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.
EBA Publishes Phase 1 of Reporting Framework 3.1
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
APRA to Finalize Capital Adequacy Standard Revisions by January 2022
Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA
ESMA Issues Guidelines on Outsourcing to Cloud Service Providers
ESMA published the final guidelines on outsourcing to cloud service providers.
EBA Publishes Data on Deposit Guarantee Schemes
EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.
OSFI Sets Out Plan for Future Guidance on Managing Technology Risk
OSFI has set out the schedule for release of draft guidance on the management of technology risks by federally regulated financial institutions and private pension plans.
MAS Updates Housing Loan Rules, Proposes Corporate Governance Guidance
MAS updated rules for new housing loans by banks and finance companies.
