Featured Product

    APRA to Recommence Prudential Policy Program and License Issuance

    August 10, 2020

    APRA announced its intent to recommence public consultations on select policy reforms and to begin a phased resumption of the issuance of new licenses for banking, insurance, and superannuation entities. These initiatives were suspended in March and April due to the impact of COVID-19 pandemic. One key policy reform that will be recommenced in 2020 through the process of public consultation involves the capital reforms for banks, incorporating APRA’s unquestionably strong framework, Basel III, and measures to improve transparency, comparability, and flexibility. Additional reforms that are to be recommenced are the insurance capital reforms to incorporate changes in the accounting framework (AASB 17), the cross-industry prudential standard for remuneration, the prudential standard for insurance in superannuation, and the updated guidance on the sole purpose test.

    Aligned with its policy agenda, APRA will also restart consultation on a limited number of its data collections, including the recommencement of its superannuation data Transformation project. The policy program for 2021 will be reviewed in light of the current environment and with a view to continuing to support the financial sector as it responds to the impact of COVID-19 pandemic. In recognition of the high degree of ongoing uncertainty, policy initiatives will be responsive to the industry capacity and government priorities. 

    The recommencement of the assessing and issuing of new banking, insurance, and superannuation licenses will occur in two phases, with phase one starting in September 2020 and phase two in March 2021. New licenses issued during phase one will be issued to applicants that are branches or subsidiaries of foreign entities with significant financial resources and a strong operational track record in a similar business. APRA will also accept new license applications from any entity from September 2020. From March 2021, APRA envisages new licenses may be issued to any entity that meets the relevant prudential requirements. APRA is also reviewing the pathways to an authorized deposit-taking institution license, including the restricted authorized deposit-taking institution licensing framework that was launched in 2018, to incorporate experiences to date, while continuing to support competition in the sector.

     

    Related Links

    Keywords: Asia Pacific, Australia, Banking, Insurance, Pensions, Superannuation, COVID-19, Remuneration, AASB 17, Insurance Contracts, IFRS 17, Regulatory Capital, Basel, Bank Licenses, APRA

    Featured Experts
    Related Articles
    News

    FSB Sets Out Effective Practices for Cyber Incident Recovery

    FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.

    October 19, 2020 WebPage Regulatory News
    News

    HKMA Urges Early Action for Adherence to IBOR Fallbacks Protocol

    HKMA urged authorized institutions to take early action to adhere to the IBOR Fallbacks Protocol, which ISDA is expected to publish soon.

    October 16, 2020 WebPage Regulatory News
    News

    FSB Sets Out Roadmap for Transition to Alternative Reference Rates

    FSB published a global transition roadmap for London Inter-bank Offered Rate (LIBOR).

    October 16, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Response to Proposal on BRRD2 Transposition

    HM Treasury published a document that summarizes the responses received from a consultation on the approach of UK to transposition of the revised Bank Resolution and Recovery Directive (BRRD2).

    October 15, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Response to Proposal on CRD5 Transposition

    HM Treasury published the government response to the feedback received on the consultation for updating the prudential regime of UK before the end of the Brexit transition period.

    October 15, 2020 WebPage Regulatory News
    News

    BoE Publishes Reporting Schedule for Statistical Returns

    In a recent statistical notice, BoE announced publication of the reporting schedule for statistical returns for 2021.

    October 15, 2020 WebPage Regulatory News
    News

    EC Welcomes Declaration by Member States on EU Cloud Federation

    EC welcomed the joint declaration by 25 EU member states on building the next generation of cloud in Europe.

    October 15, 2020 WebPage Regulatory News
    News

    PRA Updates Supervisory Statement on Counterparty Credit Risk

    PRA published the final policy statement PS22/20, which contains the updated supervisory statement SS12/13 on counterparty credit risk.

    October 14, 2020 WebPage Regulatory News
    News

    FSB Publishes Update on Work to Address Market Fragmentation

    FSB published an update on its work to address market fragmentation. FSB is working in this area in collaboration with the other standard-setting bodies.

    October 14, 2020 WebPage Regulatory News
    News

    EBA Proposes to Revise Guidelines on Incident Reporting Under PSD2

    EBA proposed revisions to the guidelines on major incident reporting under the second Payment Service Directive (PSD2).

    October 14, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5967