APRA Update on Implementation of Royal Commission Recommendations
APRA published an update on its implementation of the recommendations directed by the Royal Commission into misconduct in the banking, superannuation, and financial services industry. APRA is on track to meet the timelines with respect to the implementation of these recommendation. Out of the 10 recommendations that required APRA attention, four recommendations would be completed in 2019 and another five would be completed by the end of 2020.
The recommendations of the Royal commission covered the following key topics:
- Amendment on prudential standard APS 220 on Credit Quality, for which a consultation was released in March 2019 and the final version will be issued by the end of 2019.
- Banking Executive Accountability Regime (BEAR) product responsibility, for which the proposed requirements were issued in June 2019 and they wil be finalized by the end of 2019.
- Amendment of Prudential Standard SPS 250 (Insurance in Superannuation), the proposed changes for which will be consulted later this year 2019, with a view to finalizing them in 2020.
- Finalization of Prudential Standard CPS 511 on supervision of remuneration principles, standards, and guidance, a consultation for which was launched in July 2019 and the final prudential standard will be published in early 2020.
- Supervision of culture and governance, as part of which APRA is developing an enhanced approach to the supervision of governance, culture, remuneration, and accountability in regulated institutions. APRA intends to publish a statement of its approach by the end of 2019. APRA will build this approach on additional resourcing provided by the government in the 2019 Budget, the recommendations of the Royal Commission, and the recommendations of the Capability Review.
Related Links
Keywords: Asia Pacific, Australia, Banking, Insurance, Superannuation, APS 220, SPS 250, BEAR, Royal Commission Recommendations, Operational Risk, CPS 511, Capability Review, APRA
Previous Article
MFSA Updates Guidelines for Supervisory Reporting RequirementsNext Article
APRA Publishes Corporate Plan for 2019-2023Related Articles
FINMA Approves Merger of Credit Suisse and UBS
The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
MFSA Sets Out Supervisory Priorities, Issues Reporting Updates
The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023
German Regulators Issue Multiple Reporting Updates for Banks
Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
