APRA proposed an approach to implementing the end-to-end product responsibility for authorized deposit-taking institutions under the Banking Executive Accountability Regime (BEAR). The proposal aims to enhance customer experience and outcomes by addressing recommendation 1.17 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The consultation on the proposed measures ends on August 23, 2019 and APRA expects to implement the new requirements by July 01, 2020. APRA aims to release a draft schedule, with the proposed product responsibility requirements, for further consultation in October 2019 and the final legislative instrument in December 2019.
APRA has addressed a consultation letter to authorized deposit-taking institutions, detailing how it intends to achieve heightened and clarified product accountability among senior executives. The letter requests feedback on four key considerations related to implementing the proposed product responsibility requirements: the scope of accountability, product coverage, the structure of the legal mechanism, and the application of joint accountability in authorized deposit-taking institutions and authorized deposit-taking institutions groups. Although the requirements directly apply to the locally incorporated authorized deposit-taking institutions, APRA strongly encourages all authorized deposit-taking institutions to consider the elements of strengthened product accountability as they relate to their accountable persons, along with the accountability statements and map. Given the Government announcement that the BEAR will be extended to insurers and Registrable Superannuation Entity licensees, all APRA-regulated entities may have an interest in providing feedback on the proposed approach.
Comment Due Date: August 23, 2019
Effective Date: July 01, 2020 (Proposed)
Keywords: Asia Pacific, Australia, Banking, Insurance, Pensions, Superannuation, BEAR, Operational Risk, Accountability Regime, APRA
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.