Download:  Draft Prudential Standard

The Australian Prudential Regulation Authority (APRA) today released for industry comment a draft prudential standard on Board Composition for all Authorised Deposit-taking Institutions (ADIs).

When finalised, the standard will replace the existing Prudential Statement on Ownership and Control of Banks (PS B1) for banks, subsection 237(2) of the former Financial Institutions Code for building societies and credit unions, and the FI Scheme Prudential Standard on Directors for former special service providers.

The draft standard is largely based on the prudential requirements set out in PS B1 with respect to the composition of the Board of an ADI. In addition, the draft standard incorporates some of the key principles contained in the conglomerate policy framework relating to the composition of an ADI Board, including the application of fit and proper requirements to directors of ADIs.

The draft standard, as well as PS B1, the preserved subsection 237(2) of the former Financial Institutions Code and the FI Scheme Prudential Standard on Directors, are available on the APRA website, www.apra.gov.au.

Comments are invited on the proposed standard by 31 August 2001, and may be addressed to:

Mr Brian Gray
Executive General Manager
Policy, Research and Consulting
Australian Prudential Regulation Authority
GPO Box 9836
Sydney NSW 2001

Alternatively - email adistandards.boardcomp@apra.gov.au

For further information contact:

Gloria Peterson
Public Affairs Manager
02 9210 3385