On Jun. 11, 2025, AST GVT registered Banking (prudential standard) determination no. 2 of 2025, to replace the existing APS 112; issued explanatory statement.
The new APS 112 incorporates a consequential amendment from AST APRA’s policy changes to market valuations for liquid assets under APS 210 (#207274).
The determination commences on Jul, 1, 2025.
On Sep. 6, AST APRA issued proposal on minor updates to framework.
AST APRA issued letter to all AST APRA-regulated entities, titled Prudential framework minor updates, that outlines proposed set of minor updates to prudential framework.
To the prudential framework for authorised deposit-taking institutions (ADIs); general, life and private health insurers; and registrable superannuation entity (RSE) licensees.
Mainly technical clarifications, does not present any material change in policy settings.
It published annex A: proposed revisions in clean and mark-up showing updates.
AST APRA explained that this proposal is intended to ensure the framework is updated in the intervening periods between comprehensive reviews of prudential standards.
Minor updates are proposed to the standards as well as guidance, listed below.
Specifically, APS 110 capital adequacy, which covers the ADIs industry; as well as APS112 capital adequacy: measurement of capital, which also covers the ADIs industry.
APS 116 capital adequacy: market risk, which covers the ADIs industry as well.
HPS 110 capital adequacy, which covers private health insurance (PHI) industry.
HPS 112 capital adequacy: measurement of capital, which covers PHI industry as well.
CPS 511 remuneration, which covers ADIs, general insurance, life insurance, PHI, super industries; and GPG 240 insurance risk, which covers general insurance industry.
LPG 240 life insurance risk and life reinsurance management, covering life insurance.
Consultation Period
Comment period closes on Oct. 4, 2024; expects to release final revisions in late 2024.
Nov. 28, 2024 AST GVT Registered Determinations
On Nov. 28, 2024, AST GVT registered Banking (prudential standard) determination no. 6 of 2024, which will commence on Jan. 1, 2025; explanatory statement, re same.
This instrument determines a new prudential standard APS 110 capital adequacy.
In addition, this instrument revokes APS 110 capital adequacy which was made under the Banking (prudential standard) determination no. 4 of 2022, see #122574.
AST GVT also registeredBanking (prudential standard) determination no. 7 of 2024.
This instrument will commence on Jan. 1, 2025, too; published explanatory statement.
It determines a new prudential standard APS 116 capital adequacy: market risk.
In addition, it revokes prudential standard APS 116 capital adequacy: market risk made under Banking (prudential standard) determination no. 9 of 2022, see #152203.
Nov. 29, 2024 AST GVT Additional Determination
On Nov. 29, 2024, AST GVT registered the Health insurance (prudential standard) determination no. 2 of 2024, regarding HPS 110 and published explanatory statement.
Instrument determines new Prudential standard HPS 110 capital adequacy.
In addition, instrument revokes prudential standard HPS 110 capital adequacy made under Health insurance (prudential standard) determination no. 2 of 2023, #174953.
The instrument commences on Jan. 1, 2025.
Dec. 3, 2024 Additional Determination Registered
On Dec. 3, 2024, AST GVT registered the Health insurance (prudential standard) determination no. 3 of 2024, to make new HPS 112; issued explanatory statement.
Instrument replaces the existing HPS 112 capital adequacy: measurement of capital.
The instrument commences on Jan. 1, 2025.
Dec. 5, 2024 Response to Consultation
On Dec. 5, 2024, AST APRA issued responses to the consultation mentioned above.
Namely, APS 110 capital adequacy (ADIs), as finalized with Jan. 1, 2025 effectiveness.
APS 112 capital adequacy: standardised approach to credit risk (ADIs), which has been confirmed in principle and the new standard is set to be registered in Q1 of 2025.
APS 116 capital adequacy: market risk (ADIs), finalized and effective Jan. 1, 2025.
HPS 110 capital adequacy (private health insurance), finalized, effective Jan. 1, 2025.
HPS 112 capital adequacy: measurement of capital (private health insurance), finalized with Jan. 1, 2025 effectiveness; GPG 240 insurance risk (general insurance), released with immediate effect; LPG 240 life insurance risk and life reinsurance management.
