Featured Product

    APRA Publishes Annual Report Assessing Its Performance as A Regulator

    December 19, 2019

    APRA released its 2018-19 self-assessment report, which contains the assessment of APRA against the six key performance indicators set out within the Regulatory Performance Framework of the government. Although APRA considers that it has met all six key performance indicators set out in the framework, opportunities for improvement have been identified for three indicators. These three indicators involve communication with regulated entities, improvements in assessment of proposed policy changes, and streamlining of compliance and monitoring approaches.

    APRA conducted this self-assessment  against the Regulator Performance Framework of the government. The framework comprises six key performance indicators, also known as KPIs, that articulate the overarching expectations of regulator performance by the government, namely:

    • KPI 1: Regulators do not unnecessarily impede the efficient operation of regulated entities.
    • KPI 2: Communication with regulated entities is clear, targeted, and effective.
    • KPI 3: Actions undertaken by regulators are proportionate to the regulatory risk being managed.
    • KPI 4: Compliance and monitoring approaches are streamlined and coordinated.
    • KPI 5: Regulators are open and transparent in their dealings with regulated entities.
    • KPI 6: Regulators actively contribute to the continuous improvement of regulatory frameworks.

    In promoting financial stability in Australia, APRA continues to balance financial safety with efficiency, competition, contestability, and competitive neutrality in line with its statutory objectives. APRA achieved its target of 100% compliance with Office of Best Practice Regulation (OBPR) requirements for all changes to the prudential framework made across all regulated industries in 2018-19; this included the preparation of formal Regulatory Impact Statements (to assess the costs and benefits of proposed policy changes), where required. Despite being assessed as compliant by the OBPR, the 2019 biennial stakeholder survey indicated that only 31% (23% in 2017) of stakeholders consider that changes to APRA’s prudential framework sufficiently consider the costs of regulation imposed on industry. Although an improvement, this suggests there is significant opportunity for APRA to improve transparency on the assessment of costs (and benefits) for proposed policy changes, and better communicate this process with APRA’s stakeholders.

    Furthermore, a key objective (and related actions) included in APRA’s 2019-2023 Corporate Plan is to improve external engagement by expanding communications to promote better prudential outcomes and drive accountability, including demonstrating how APRA balances its objectives. This was reinforced by the Capability Review of APRA. Improving transparency on the assessment of costs and benefits for proposed policy changes (such as meeting OBPR requirements) will also be addressed. 

     

    Related Links

    Keywords: Asia Pacific, Australia, Banking, Insurance, Self Assessment, Capital Review, Superannuation, Financial Stability, APRA

    Related Articles
    News

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Swap Margin Rule

    US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.

    July 01, 2020 WebPage Regulatory News
    News

    PRA Letter Sets Expectations on Approach to Managing Climate Risks

    PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.

    July 01, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR

    EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).

    July 01, 2020 WebPage Regulatory News
    News

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS Publishes List of Internationally Active Insurance Groups

    IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.

    July 01, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act

    FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).

    July 01, 2020 WebPage Regulatory News
    News

    EC Launches Consultation on Review of Solvency II Directive

    EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.

    July 01, 2020 WebPage Regulatory News
    News

    ECB Consults on Supervisory Approach to Consolidation in Banking

    ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS on Package for 2020 Data Collection on ICS and Aggregation Method

    IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.

    June 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5425