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APRA releases draft reporting standards for the supervision of conglomerate groups

Thursday 26 September 2013


The Australian Prudential Regulation Authority (APRA) has today released for consultation proposed reporting standards relating to the capital adequacy of conglomerate groups.

Conglomerate groups, referred to as Level 3 groups, are groups comprising APRA regulated institutions that perform material activities across more than one APRA-regulated industry and/or in one or more non-APRA-regulated industry.

The consultation package released today includes a discussion paper and two reporting standards together with associated reporting forms and instructions.

The proposed Level 3 data collections will assist APRA to ensure that Level 3 groups are capitalised in accordance with the proposed capital adequacy prudential standards that were released for consultation in May 2013. The capital adequacy framework encompasses all material risks to a Level 3 group’s APRA beneficiaries, including risks emanating from non-APRA-regulated institutions in the group.

Submissions on the proposed reporting standards are due by 31 October 2013.

Level 3 groups will be required to comply with the standards under the Level 3 framework by 1 January 2015. Collection of data is proposed to commence with the first reporting period ending after 1 January 2015.

APRA expects to publish the final Level 3 prudential standards in the last quarter of 2013 and intends to release final reporting standards, forms and instructions during the first quarter of 2014.

The response paper and draft reporting standards can be found on the APRA website.

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 trillion in assets for Australian depositors, policyholders and superannuation fund members.