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
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.