APRA published its updated corporate plan with a sharpened focus on regulating non-financial risks and improving outcomes for superannuation members. The Corporate Plan for 2019-2023 sets out a roadmap for reinforcing APRA’s strong track record for safeguarding financial stability, while lifting its capabilities in other key areas to better address emerging and future challenges. The 2019-2023 corporate plan comes into effect immediately.
The content of the plan has been influenced by the findings of six separate reviews and inquiries over the past 18 months that examined aspects of APRA’s regulatory approach and performance, including the financial services Royal Commission review and the recent Capability Review. In response, the new corporate plan of APRA has identified four areas of strategic focus aimed at strengthening outcomes for the Australian community:
- Maintaining financial system resilience. This includes milestones such as moving from a three-yearly to an annual stress-testing cycle for authorized-deposit taking institutions; improving the data submitted by authorized-deposit taking institutions to enhance the prudential supervision of the industry by APRA; implementing changes to strengthen the capital prudential standards that apply to authorized-deposit taking institutions; and strengthening governance and risk management practices in the superannuation industry.
- Improving outcomes for superannuation members. This includes improving quality and consistency of superannuation data submitted to APRA, publishing additional data on the APRA assessment of superannuation performance, facilitating implementation of legislation and strengthen prudential standards, improving the transparency of supervisory actions taken by APRA, and publishing results of benchmarking exercises.
- Improving cyber-resilience across the financial system. This strategic focus area covers implementing changes to the prudential standards, implementing new supervision practices to assess cyber resilience, and uplifting industry practice to manage cyber incidents.
- Transforming governance, culture, remuneration, and accountability across all regulated financial institutions. In this area, focus will be on introducing baseline indicators to assess governance practices and risk culture, increasing thematic reviews of governance, measuring risk culture across industries, and implementing the revised remuneration prudential standard.
To deliver on the strategic priorities of APRA, the Corporate Plan also identifies a number of key areas where APRA will focus on lifting its internal capabilities over the next four years:
- Improving and broadening risk-based supervision including review of supervisory approach of APRA, implementation of new enforcement approach of APRA, improvements in analysis of external environment of APRA.
- Improving resolution capability by developing resolution planning prudential standard for authorized-deposit taking institutions and insurers, conducting formal resolution planning, and improving recovery planning for authorized-deposit taking institutions and insurers.
- Improving external engagement and collaboration by developing and implementing communications plan, in addition to strengthening collaboration with domestic and international peer agencies.
- Transforming data-enabled decision-making by implementing data strategy of APRA, which includes reviewing data collected by APRA.
- Transforming leadership, people, and culture by defining and articulating the desired culture of APRA, implementing initiatives to support desired culture, developing leadership capability uplift plan, implementing new structure of APRA.
Keywords: Asia Pacific, Australia, Banking, Insurance, Pensions, Superannuation, Corporate Plan, Stress Testing, Governance, Cyber Resilience, Resolution Planning, APRA
Previous ArticleECB Paper on Implications of Crypto-Assets for Financial Stability
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.
ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.
The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.
OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.
EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.