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

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267