APRA published the first edition of APRA Insight for 2020. The newsletter features articles on the evolving approach to supervising risk culture, the new approach to quarterly reporting, and the to-date progress on the recommendations of the Royal Commission toward improved supervision. This edition also mentions that APRA has launched a series of consultations aimed at substantially increasing the amount of data published in the authorized deposit-taking institution, general insurance, and life insurance sectors.
The newsletter highlights that the breadth, depth and quality of the data collected as part of the APRA supervision of superannuation funds is undergoing an upgrade under the banner of the multi-year Superannuation Data Transformation project. Launched in November last year, consultation on the initial phase of this project is progressing, with focus on addressing the most urgent gaps in data collection by APRA. Phases two and three will focus on increasing the granularity and consistency of the entire superannuation data collection, with their own consultation stages to follow. APRA expects to release the finalized prudential standard SPS 250 on insurance in superannuation and to commence consultation on a revised prudential practice guide SPG 250 on insurance in superannuation by mid-2020.
This issue of the newsletter also highlights the following key developments that are on the horizon:
- APRA has completed the final testing phase of the Supervision Risk and Intensity Model, which is slated to replace the existing risk rating system, known as PAIRS and SOARS. The roll-out of the model is being planned across the financial sector during the financial year 2020-21. APRA will shortly begin industry engagement on how the new model works, its expected impact on regulated entities, and plans for implementation from April 2020. APRA expects to publish the detail and mechanics underpinning this model, along with its revised Supervision Philosophy and supervision approach, in June 2020.
- In the second quarter of 2020, APRA plans to release a second consultation package on offshore reinsurers and the review of the prudential standard LPS 117 on asset concentration risk charge as part of the capital adequacy.
- Submissions are closing soon on the proposed revisions to the capital framework for private health insurance, which commenced last December. The consultation closes on March 27.
Related Link: APRA Insight
Keywords: Asia Pacific, Australia, Banking, Insurance, Securities, Pensions, Superannuation, Data Collection, Reporting, SPS 250, LPS 117, Capital Adequacy, Rating System, Newsletter, APRA
Previous ArticleSAMA Publishes Guidelines and Rules for Banks and Insurers
The Australian Prudential Regulation Authority (APRA) released an update on the timelines for revisions to the market risk prudential standards and the implications for the broader capital framework.
Three global standard-setters launched a joint consultation that reviews the margining practices during the COVID-19 pandemic and identifies potential areas for further policy work.
The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.
The European Banking Authority (EBA) published the final draft regulatory technical standards on gross jump-to-default amounts and on residual risk add-on under the Capital Requirements Regulation or CRR.
The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).
The European Supervisory Authorities (ESAs) have delivered to the European Commission (EC) the final report on the draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR).
The European Banking Authority (EBA) published an advice to the European Commission (EC) on funding in resolution and insolvency as part of the review of the crisis management and deposit insurance (CMDI) framework.
The Financial Stability Oversight Council (FSOC) released a report in response to the U.S. President's Executive Order on climate-related financial risk.
The Bank for International Settlements (BIS) published a paper that examines the business models and the associated risks posed by big technology firms foraying into financial services sector.
The Bank for International Settlements (BIS) announced the development of an Asian Green Bond Fund, in collaboration with the development financing community, to channel global central bank reserves to green projects in Asia Pacific.