As the end of September draws closer, APRA has been signalling what its first priorities will be in the later stages of the year, as its policy and supervisory agenda begins to resume after the pandemic-related hibernation. In the past fortnight, APRA formally confirmed it will shortly recommence public consultations on select policy reforms, as well as beginning a phased resumption of the issuing of new licenses. The announcement confirmed that APRA’s top policy priorities for the remainder of 2020 are:
the cross-industry prudential standard for remuneration;
capital reforms for authorised deposit-taking institutions incorporating APRA’s unquestionably strong framework, Basel III and measures to improve transparency, comparability and flexibility;
insurance capital reforms to incorporate changes in the accounting framework (AASB 17); and
the prudential standard for insurance in superannuation, and updated guidance on the sole purpose test.
Those seeking a longer-term view of APRA’s priorities needn’t wait long – next week APRA will release at its updated Corporate Plan covering the four years to 2024.
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, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $6.5 trillion in assets for Australian depositors, policyholders and superannuation fund members.
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