The Australian Prudential Regulation Authority (APRA) has released a discussion paper on proposed minor amendments to prudential standards on governance for authorised deposit-taking institutions (ADIs), general insurers and life insurers.

These amendments follow recent changes to the ASX Corporate Governance Council’s Principles of Good Corporate Governance and Best Practice Recommendations dealing with the independence of board directors.

APRA intends to continue an alignment with the Council’s Principles and the discussion paper sets out how this will be achieved. The proposed amendments to prudential standards do not impose any new requirements on APRA-regulated institutions and APRA does not envisage that institutions will incur any costs in complying.

Written submissions on these proposals should be sent by email to governance@apra.gov.au by 28 September 2007.

Along with the discussion paper, APRA has included a revised Prudential Standard APS 510 Governance for ADIs which, following consultation, is expected to take effect from 1 January 2008.

Prudential standards on governance for general insurers and life insurers (GPS 510 and LPS 510) will also be revised in the same way, but will be finalised subject to a number of other changes required as a result of the Financial Sector Legislation Amendment (Simplifying Regulation and Review) Bill 2007. APRA will consult separately on those other changes.

The discussion paper and the revised Prudential Standard APS 510 Governance are available on APRA’s website at www.apra.gov.au/policy.

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 $2.5 trillion in assets for 21 million Australian depositors, policyholders and superannuation fund members.

Media and industry inquiries only:
Andrew McCutcheon, Public Affairs Manager
Australian Prudential Regulation Authority
Telephone: 02 9210 3143
Mobile: 0417 528 660

All other inquiries:
APRA Contact Centre 1300 131 060