APRA operates under laws determined by the Australian Parliament. Among other things, these laws grant APRA the power to set prudential standards that underpin its supervisory approach towards supervised institutions.
For deposit-taking and insurance industries, APRA has developed a comprehensive framework of prudential standards and prudential practice guides to promote sound financial and risk management and good governance.
In the superannuation industry, APRA administers regulations and operating standards put in place by the Australian Parliament. APRA’s prudential standards set out minimum capital and risk management requirements, which are legally binding. Prudential practice guides provide guidance on how supervised institutions might best satisfy the prudential standards.
When APRA proposes new prudential standards or prudential practice guides, or significant changes to existing standards and guides, there is a period of consultation with industry on the proposals. APRA releases final prudential standards and prudential practice guides once the consultation with industry has been completed.
Annual Regulatory Plan (ARP) details APRA’s planned activities for regulatory changes in the current financial year. The ARP also provides a summary of regulatory proposals that were finalised in the previous financial year.
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