A new centralised glossary for APRA’s prudential framework

To: All authorised deposit-taking institutions and insurers 

As part of APRA’s strategic initiative to Modernise the Prudential Architecture, APRA is releasing for consultation a new cross-industry standard, Prudential Standard CPS 001 Defined terms (CPS 001).

CPS 001 centralises APRA’s five existing definitions standards into a single consolidated standard.¹ An excel version of CPS 001 has also been published on APRA’s website, providing a more user friendly and interactive version of the standard, as an interim measure as APRA develops the prudential digital handbook.

CPS 001 Defined terms

CPS 001 does not introduce any new defined terms but simply consolidates existing definitions into one place. This has been important, to remove terms that are no longer used in the prudential standards and to address some duplication in definitions across different standards. At a future point CPS 001 will be updated to reflect new or changing definitions.

The single consolidated standard is also important in supporting the development of a digital framework, which will bring together all of APRA’s prudential standards, guidance and supporting information into a dynamic format that can be searched and navigated easily. The digital framework is under development this year for release in the second half of 2024.

Request for submissions

APRA welcomes feedback on draft CPS 001. APRA would also welcome feedback on the accompanying excel version, and whether it is useful for regulated entities in navigating the defined terms.

Written submissions should be sent to PolicyDevelopment@apra.gov.au by 13 March 2024 and addressed to the General Manager, Policy, APRA. Subject to feedback, APRA expects that the finalised CPS 001 would take effect on 1 July 2024.

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.

Yours sincerely,

Clare Gibney
Executive Director
Policy & Advice

Footnote

¹ The existing Definitions standards are APS 001 Definitions, GPS 001 Definitions, LPS 001 Definitions, HPS 001 Definitions and 3PS 001 Definitions.