AST APRA consulted on minor updates to prudential framework for ADIs and insurers.
Follows Jun. 2023, AST APRA proposed minor updates to framework, see #176609.
Proposed Changes
This consultation is part of the minor framework update process, intended to ensure technical and clarifying changes to the framework can be made in a timely manner.
Amendments are technical clarifications, there is no material change in policy settings.
Prudential standards/practice guides covered are: APS 111 Capital adequacy: measurement of capital (ADIs); APS 220 Credit risk management; APG 210 Liquidity;
APS 330 Public disclosure (Jan. 2025); GPS 310 Audit and related matters; HPS 112 Capital adequacy: measurement of capital; LPS 112 Capital adequacy: measurement of capital; and LPS 117 Capital adequacy: asset concentration risk charge.
Effectiveness
Consultation period closes May 3, 2024.
In Jun. 2024, AST APRA spoke on regulatory settings in banking sector, see #217240.
It revokes Prudential standard LPS 112 capital adequacy: measurement of capital made under Life insurance (prudential standard) determination No.7 of 2023.
This revokes Prudential standard LPS 117 capital adequacy: asset concentration risk charge made under Life insurance (prudential standard) determination no. 9 of 2023.
AST GVT issued explanatory statements regarding both determinations, where AST APRA did not receive any submissions re LPS 112 and LPS 117 during consultation.
It revokes Prudential standard GPS 310 audit and related matters made under Insurance (prudential standard) determination no. 9 of 2019 and determines a new Prudential standard GPS 310 audit and related matters (GPS 310).
It revokes Prudential standard HPS 112 capital adequacy: measurement of capital made under Health insurance (prudential standard) determination No. 3 of 2023.
It determines Prudential standard HPS 112 capital adequacy: measurement of capital.
AST GVT issued explanatory statements regarding both determinations, where AST APRA did not receive any submissions re GPS 310 and HPS 112 during consultation.
Both determinations commences Oct. 1, 2024.
Jul. 17, 2024 Updates to Minor Amendments
On Jul. 17, 2024, AST APRA released response to consultation on minor amendments to prudential framework for authorized deposit-taking institutions (ADIs) and insurers.
Updates are technical clarifications and are not material changes in policy settings.
APG 210 Liquidity released immediately; GPS 310 Audit and related matters, HPS 112 and LPS 112 Capital adequacy: measurement of capital, LPS 117 Capital adequacy: asset concentration risk charge, have all been finalized, effective Oct. 1, 2024.
APS 330 Public Disclosure has been finalized, effective Jan. 1, 2025.
APS 111 Capital adequacy: measurement of capital, and APS 220 Credit risk management, have been deferred (see attachment A for further information).
Sep. 2024 AST GVT Registered Instrument
On Sep. 3, 2024, AST GVT registered Banking (prudential standard) determination no. 3 of 2024, which revokes existing APS 330 and determines APS 330 referred to above.
