Featured Product

    APRA Publishes Policy and Supervisory Priorities for 2020

    January 30, 2020

    APRA has set out its policy and supervision priorities for the next 12 to 18 months, with an emphasis on fulfilling the strategic goals of its Corporate Plan. These goals are maintaining financial system resilience, improving outcomes for superannuation members, improving cyber-resilience in the financial sector, and transforming governance, culture, remuneration, and accountability (GCRA) across all APRA-regulated institutions. Additionally, while speaking at the Chair Forum of the Investment Magazine, the APRA Deputy Chair Helen Rowell presented the policy and supervisory agenda for superannuation sector in 2020.

    Consistent with the previous years, the policy priorities of APRA offer a forward view of planned changes to the prudential framework. Among the key cross-industry policy priorities for 2020 are initiatives aimed at driving improvements in GCRA, including finalizing a more robust prudential standard on remuneration, and updating prudential standards on governance and risk management. Additionally, as flagged in the APRA Insight last month, APRA intends to roll out a new prudential risk rating system to replace its long-standing Probability and Impact Rating System and Supervisory Oversight and Response System (also known as PAIRS and SOARS models) mid-year. APRA will also work closely with the Treasury and the Australian Securities and Investments Commission in expanding the Banking Executive Accountability Regime (BEAR) to the insurance and superannuation sectors. The other key policy priorities include the following:

    • Strengthening crisis preparedness, including the development of a new prudential standard on resolution and recovery planning
    • Completing the current review of the capital framework for authorized deposit-taking institutions to implement unquestionably strong capital ratios and the Basel III reforms
    • Progressing a range of enhancements recommended by the post-implementation review of the original superannuation prudential framework introduced in 2013
    • Continuing work on strengthening the capital framework for private health insurers

    Accompanying the policy priorities are the supervision priorities of APRA, which outline how the supervision function will be directed toward significant risks in the financial system and actions to ensure that these risks are well-managed and mitigated. In the supervision arena, the following are the key priorities for 2020: 

    • Maintaining financial resilience, including through increased focus on recovery and resolution planning and stress testing
    • Conducting a range of GCRA-related supervisory reviews and deep dives and using entity self-assessments to drive greater accountability
    • Encouraging under-performing superannuation funds to urgently improve member outcomes or exit the industry
    • More closely assessing institutions’ capability to deal with emerging and accelerating risks, such as cyber-security and climate change

     

    Related Links

    Keywords: Asia Pacific, Australia, Banking, Insurance, Pensions, Superannuation, Policy Priorities 2020, Supervision Priorities 2020, GCRA, Corporate Plan, Basel III, BEAR, Resolution Framework, Operational Risk, APRA

    Featured Experts
    Related Articles
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    News

    SEC Extends Comment Period on Climate Risk Disclosures

    The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.

    May 09, 2022 WebPage Regulatory News
    News

    APRA Reduces Committed Liquidity Facility, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.

    May 09, 2022 WebPage Regulatory News
    News

    CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks

    The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.

    May 06, 2022 WebPage Regulatory News
    News

    PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down

    The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.

    May 06, 2022 WebPage Regulatory News
    News

    EBA Updates Standards for 2023 Benchmarking of Internal Approaches

    The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.

    May 06, 2022 WebPage Regulatory News
    News

    EIOPA Responds to Stakeholder Views on Blockchain in Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.

    May 06, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8179