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.
Keywords: Asia Pacific, Australia, Banking, Insurance, Superannuation, APS 220, SPS 250, BEAR, Royal Commission Recommendations, Operational Risk, CPS 511, Capability Review, APRA
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