APRA Insight Issue Two 2019
A message from APRA Deputy Chair Helen Rowell
Welcome to our final edition of APRA Insight for 2019.
Superannuation in Australia: planning for change, sustainability and resilience
From APRA’s perspective, "sustainability” is not a direct measure of current performance or outcomes; instead is it an indicator of a trustee’s likely ability to continue delivering sound member outcomes into the future, and address areas requiring improvement.
Superannuation in Australia: a timeline
APRA: a family-friendly employer
At APRA we understand that it is important for our employees to thrive both at work and at home. To encourage this, our practices and policies offer great benefits and flexibility, and give a clear example of how our culture supports working families.
APRA’s new Supervision Risk and Intensity (SRI) model
APRA’s risk assessment and supervisory intensity models, PAIRS and SOARS, are being replaced to provide a stronger platform for financial system resilience.
On the horizon
APRA is preparing to launch a new digital publication highlighting our major regulatory and supervisory activities over the calendar year and key themes and trends across the banking, insurance and superannuation industries we regulate. The “Year in Review”, due out shortly, is part of APRA’s drive to better communicate how we help safeguard Australia’s financial system and ensure the financial well-being of the Australian community.
Early next year, APRA will lay out its agenda for 2020 with the publication of our annual policy priorities document. Concurrently, we will also release – for the first time – our supervision priorities for the year ahead. The publication of the new document aligns with APRA’s commitment to providing greater transparency around its actions and decisions. Shortly thereafter, APRA will release its Supervision Philosophy document, which underpins the supervisory approach used by APRA to execute our mandate of supporting financial soundness and stability.
Also in the first quarter of 2020, we intend to publish a response to submissions on our draft remuneration prudential standard. Since launching the consultation on Draft Prudential Standard CPS 511 Remuneration in July, APRA has conducted industry webinars with over 380 registered attendees across the ADI, insurance and superannuation industries as well as over 30 individual meetings with stakeholder groups. Through this process, stakeholders submitted 76 submissions. We intend to continue this active consultation approach ahead of the upcoming releases of the final standard, draft remuneration prudential practice guide and remuneration disclosure and reporting requirements.
The Financial Claims Scheme: Protecting depositors and policyholders
Financial failures in Australia are extremely rare, but APRA does not and cannot guarantee a zero percent failure rate. For that reason, the Australian Parliament established an extra layer of security for consumers at the height of the global financial crisis in 2008.
Data find: APRA’s newly expanded Monthly ADI Statistics
APRA’s Monthly Authorised Deposit-taking Institutions statistics (MADIS) publication replaces APRA's Monthly Banking Statistics (MBS) and now includes additional ADIs - building societies, larger credit unions and other ADIs. This expansion is in line with APRA's objective to increase the public availability of data it collects for the ADI sector.
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 $8.6 trillion in assets for Australian depositors, policyholders and superannuation fund members.