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Consultation on remuneration requirements for all APRA-regulated entities
APRA is creating a new prudential standard relating to remuneration requirements across all APRA-regulated industries. The new requirements will help regulated entities align remuneration practices with risk, performance and their long-term viability.
New cross-industry prudential standard on remuneration requirements – Open
On 23 July 2019, APRA released for consultation a discussion paper on the creation of a new prudential standard aimed at clarifying and strengthening remuneration requirements for all APRA-regulated entities.
Draft Prudential Standard CPS 511 Remuneration introduces heightened requirements on entities’ remuneration arrangements in response to evidence that existing arrangements have been a factor driving poor consumer outcomes. The proposed framework addresses recommendations 5.1 to 5.3 from the Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, which were endorsed by the Government in February.
Written submissions are requested by 23 October 2019.
The discussion paper and draft prudential standard can be found below: