APRA finalises minor framework updates
To: All authorised deposit-taking Institutions and insurers
APRA is finalising several minor updates to the prudential framework. These updates are technical clarifications and are not material changes in policy settings.
Five submissions were received on the proposed minor amendments. Non-confidential submissions are available on APRA’s website. High-level feedback on the minor update process has been noted. Submissions did not object to the proposed updates.
The updates finalised today are summarised in the following table. They remain largely unchanged from the proposed updates consulted on in June of this year.1
Prudential standard or guidance | Industries covered | Effective date |
|---|---|---|
Prudential Standard APS 180 Capital Adequacy: Counterparty Credit Risk (APS 180) | ADI | 1 Jan 2024 |
Prudential Practice Guide APG 210 Liquidity (APG 210) | ADI | To be finalised separately2 |
Prudential Standard APS 120 Securitisation (APS 120) | ADI | 1 Jan 2024 |
Prudential Practice Guide CPG 110 Internal Capital Adequacy Assessment Process and Supervisory Review (CPG 110) | GI, LI, PHI, ADI | Immediate |
Prudential Standard CPS 320 Actuarial and Related Matters (CPS 320) | GI, LI, PHI | 1 Jan 2024 |
The minor framework updates process is an initiative under APRA’s strategy to modernise the prudential architecture.3 This approach to minor updates is to ensure that between comprehensive reviews of prudential standards and guidance the framework is updated in a timely manner. APRA will take on board feedback on the minor update process received via submissions. Consultation on the next round of minor updates is planned for early 2024.
Yours sincerely,
Clare Gibney
Executive Director,
Policy & Advice
Footnotes
1 Prudential Framework minor updates, APRA (Letter, June 2023).
2 Targeted changes to ADI liquidity and capital standards, APRA (Letter, November 2023).
3 Modernising the prudential architecture, APRA (Information Paper, September 2022).