The Australian Prudential Regulation Authority (APRA) today released a discussion paper and draft prudential rules on proposed changes to friendly society regulatory returns.

The discussion paper sets out proposed new requirements for the reporting of friendly society financial statements (Draft Prudential Rules No. 47) and statistics (Draft Prudential Rules No 48).

The revised reporting requirements follow the introduction in Australia of International Financial Reporting Standards (IFRS) and the consequential recent changes to the Actuarial Standards under the Life Insurance Act 1995 by the Life Insurance Actuarial Standards Board.

The revised requirements also complement recent changes to financial reporting requirements for friendly societies made by the Australian Securities and Investments Commission.

APRA Member, Mr Steve Somogyi, said that while APRA's objective following the introduction of IFRS is to align prudential reporting standards with Australian accounting standards and principles to the extent practicable, this is not always appropriate.

"These new regulatory reporting requirements will be similar to the requirements for life companies but recognise the different fund structures of friendly societies", he said.

Subject to consultation on the discussion paper, the final prudential rules will be released in the second quarter of 2006 and will apply to regulatory financial statements and statistics produced for reporting periods ending on or after 31 May 2006. Friendly societies have been provided with an additional six weeks to file their initial reports.

APRA invites comments on the discussion paper and draft prudential rules which are available on APRA's web site at www.apra.gov.au. Comments can be sent to pr48@apra.gov.au by 14 March 2006.

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $2.2 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.

Media and industry inquiries only:
Stuart Snell, Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3384
Mobile: 0407 250 276

All other inquiries:
APRA Contact Centre
1300 131 060