Finalising minor prudential framework updates for ADIs, insurers and registrable superannuation entity licensees
To: All authorised deposit-taking institutions (ADIs), insurers and registrable superannuation entity licensees
APRA is finalising several minor updates to the prudential framework. These minor updates are technical clarifications and corrections as opposed to changes in policy settings.
APRA consulted on the proposed changes in September 2024. APRA received two submissions supportive of proposed changes to APS 110 and APS 112, and no submissions regarding other proposed changes. APRA’s response is summarised in the table below. Non-confidential submissions are available on APRA’s website1.
Standard or guidance subject to change | Industries covered | APRA response |
APS 110 Capital Adequacy | Authorised Deposit-Taking Institutions | Finalised: effective 1 January 2025 |
APS 112 Capital Adequacy: Standardised Approach to Credit Risk | Authorised Deposit-Taking Institutions | Confirmed in principle: new APS 112 to be registered early Q1 2025 |
APS 116 Capital Adequacy: Market Risk | Authorised Deposit-Taking Institutions | Finalised: effective 1 January 2025 |
HPS 110 Capital Adequacy | Private Health Insurance | Finalised: effective 1 January 2025 |
HPS 112 Capital Adequacy: Measurement of Capital | Private Health Insurance | Finalised: effective 1 January 2025 |
CPS 511 Remuneration | All industries | Deferred: APRA will finalise in H1 2025 |
GPG 240 Insurance Risk | General Insurance | Released: immediate |
LPG 240 Life Insurance Risk and Life Reinsurance Management | Life Insurance | Released: immediate |
Yours sincerely
Sean Carmody
Executive Director
Policy & Advice