On Nov. 27, AST APRA proposed creating new cross-industry standard.
AST APRA wrote to all authorised deposit-taking institutions and insurers re proposed new cross-industry standard, Prudential standard CPS 001 defined terms (CPS 001).
In addition, AST APRA published material listed below with respect to the same.
Follows AST APRA Aug. 2023 published its corporate plan for 2023-24, see #183253.
Material Published
AST APRA published a draft of the Prudential standard CPS 001 defined terms.
Published supporting draft excel template CPS 001 defined terms - authorised deposit-taking institutions, general insurers, life companies and private health insurers.
Proposal
Proposal is part of AST APRA’s strategic initiative to modernize prudential architecture.
CPS 001 centralizes AST APRA’s 5 existing definitions standards into one consolidated standard; draft template above provides a more user friendly and interactive version of standard, as an interim measure as AST APRA develops prudential digital handbook.
Said CPS 001 does not introduce any new defined terms but is just a consolidation.
It explained this has been important, to remove terms that are no longer used in the prudential standards and to address some duplication in definitions across standards.
At a future point CPS 001 will be updated to reflect new or changing definitions.
Single consolidated standard is also important in supporting development of a digital framework, which will bring together all AST APRA prudential standards, guidance and supporting information into a dynamic format that can be searched, navigated easily.
APRA welcomes feedback on draft CPS 001 and feedback on the accompanying excel version, and whether it is useful for regulated entities in navigating the defined terms.
Next Steps
AST APRA said digital framework is under development in 2023 for release in H2 2024.
Draft CPS 001 includes provision that provides for commencement on Jul. 1, 2024.
Effectiveness
The comment period for this consultation closes on Mar. 13, 2024.
AST APRA received 3 submissions where respondents were broadly supportive of merging existing standards and provided feedback regarding definitions alignment.
AST APRA will consider the feedback on further improvements that could be made.
CPS 001 will come into effect from Oct. 1, 2024.
Aug. 23, 2024 AST GVT Determination
On Aug. 23, 2024, AST GVT registered Banking, insurance, life insurance and health Insurance (prudential standard) determination no. 1 of 2024, together with an explanatory statement; determines standard CPS 001 and commences Oct. 1, 2024.
