Prudential framework minor updates
To: All APRA-regulated entities
APRA is releasing for consultation a set of minor updates to the prudential framework. This is intended to ensure the framework is updated in the intervening periods between comprehensive reviews of prudential standards.
Minor framework updates
Minor updates are proposed to the following standards and guidance as outlined in the table below (with more detail set out in Annex A). These changes are primarily technical clarifications and do not present any material change in policy settings.
| Prudential standard or prudential practice guide | Industries covered |
|---|---|
| APS 110 Capital Adequacy | Authorised Deposit-Taking Institutions |
| APS 112 Capital Adequacy: Measurement of Capital | Authorised Deposit-Taking Institutions |
| APS 116 Capital Adequacy: Market Risk | Authorised Deposit-Taking Institutions |
| HPS 110 Capital Adequacy | Private Health Insurance |
| HPS 112 Capital Adequacy: Measurement of Capital | Private Health Insurance |
| CPS 511 Remuneration | Authorised Deposit-Taking Institutions; General Insurance; Life Insurance; Private Health Insurance; Superannuation |
| GPG 240 Insurance Risk | General Insurance |
| LPG 240 Life Insurance Risk and Life Reinsurance Management | Life Insurance |
Request for submissions
APRA welcomes feedback on the proposed changes to prudential standards and guidance.
Written submissions should be sent to policydevelopment@apra.gov.au by 4 October 2024. All information in submissions will be made available to the public on the APRA website unless a respondent expressly asks that all or part of the submission be kept confidential. APRA expects to release the finalised revisions in late 2024.
Yours sincerely
Sean Carmody
Executive Director
Policy & Advice Division
Important disclosure notice – publication of submissions
All information in submissions will be made available to the public on the APRA website unless a respondent expressly requests that all or part of the submission is to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as confidential in a separate attachment.
Submissions may be the subject of a request for access made under the Freedom of Information Act 1982 (FOIA). APRA will determine such requests, if any, in accordance with the provisions of the FOIA. Information in the submission about any APRA-regulated entity that is not in the public domain and that is identified as confidential will be protected by section 56 of the Australian Prudential Regulation Authority Act 1998 and will therefore be exempt from production under the FOIA.