Prudential and reporting framework minor updates
To: All APRA regulated entities
APRA is consulting on a set of minor updates to prudential and reporting standards.
This process is intended to ensure the framework is kept up to date in the periods between comprehensive reviews of standards. APRA considers that the proposed updates are minor in nature and do not involve any material change to requirements.
Minor framework updates
Minor updates are proposed to the following prudential standards, reporting standards and prudential practice guide outlined in the table below. More detail is set out in the attachments.
As part of APRA’s commitment to review aspects of CPS 511 Remuneration, APRA is undertaking further internal work before it will release proposals for consultation in a separate process.
| Prudential standard, practice guide or reporting standard | Industries covered | Proposed changes |
|---|---|---|
| CPS 001 Defined terms | Authorised deposit-taking institutions, general insurance, life insurance, private health insurance |
|
| GPS 410 Transfer and Amalgamation of Insurance Business for General Insurers | General insurance |
|
| HPS 115 Capital Adequacy: Insurance Risk Charge | Private health insurance | Replace the term 'management expenses' with 'other business expenses'. |
| HRS 101 Regulatory Income Statement – Supplementary Information (reporting standard) | Private health insurance |
|
| HRS 115 Insurance Risk Charge (reporting standard) | Private health insurance | Replace the term 'management expenses' with ‘other business expenses’ to align with the proposed update in HPS 115. |
| CPG 233 Pandemic Planning | Authorised deposit-taking institutions; general insurance; life insurance; superannuation | Retire. Pandemic scenario to form part of the business continuity planning requirements and testing of the plausible scenarios under CPS 230 Operational Risk Management. |
Request for submissions
APRA welcomes feedback on the proposed changes to prudential and reporting standards and guidance.
Written submissions should be sent to policydevelopment@apra.gov.au by 22 September 2025. All information in submissions will be made available to the public on the APRA website unless a respondent expressly asks that all or part of the submission be kept confidential. APRA expects to finalise these proposals in November 2025, and for them to be effective from 1 January 2026.
Yours sincerely
| Sean Carmody Executive Director Policy and Advice Division | Bruce Young |
Attachment A: Proposed revisions
CPS 001 Defined terms
APRA proposes to:
- clarify that the term ‘APRA-authorised reinsurer’ applies only to APRA-regulated entities
- replace the term ‘management expenses’ with ‘other business expenses’, without otherwise changing the definition, to align with other APRA, Department of Health and Aged Care publications and forms
- clarify which entities ought to be in scope when determining capital adequacy for Level 2 banking groups
- address minor typographical errors.
GPS 410 Transfer and Amalgamation of Insurance Business for General Insurers
APRA proposes to update GPS 410 to remove the requirement that physical scheme documents for transfers of business must be available for public inspection and make other minor updates to required availability of these documents. We believe it is no longer necessary to require physical access to these documents. Other means of access are now widely available.
Updated disclosure requirements align with recent Court practice by requiring scheme documents (the scheme, actuarial reports and the Scheme Summary) to be accessible on each insurer’s website.
HPS 115 Capital Adequacy: Insurance Risk Charge
APRA proposes to update HPS 115 to replace the term ‘management expenses’ with ‘other business expenses’. The meaning will not change. The change is simply intended to align with the term ‘other business expenses’ as used in APRA’s Quarterly private health insurance performance statistics and Department of Health and Aged Care’s premium round application forms.
HRS 101 Regulatory Income Statement – Supplementary Information (reporting standard)
APRA proposes to:
- replace the term ‘management expenses’ with ‘other business expenses’ to align with the proposed update in HPS 115.
- replace the term ‘Risk Equalisation Trust Fund’ (RETF) with ‘Risk Equalisation Special Account’ (RESA), as RETF is an outdated term.
- clarify that ‘gains/losses on investments amount’ includes both realised and unrealised gains/losses.
HRS 115 Insurance Risk Charge (reporting standard)
APRA proposes to update HRS 115 to replace the term ‘management expenses’ with ‘other business expenses’. This update is to align with the proposed update of HPS 115. As the terms are organised alphabetically in the reporting standard, items relating to ‘management expenses’ have been moved to the table under ‘O’.
Superseded prudential practice guide
APRA proposes to retire CPG 233 Pandemic Planning. Pandemic scenario to form part of the business continuity plan requirements and testing of the plausible scenarios under CPS 230 Operational Risk Management.
Important disclosure notice – publication of submissions
All information in submissions will be made available to the public on the APRA website unless a respondent expressly requests that all or part of the submission is to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as confidential in a separate attachment.
Submissions may be the subject of a request for access made under the Freedom of Information Act 1982 (FOIA). APRA will determine such requests, if any, in accordance with the provisions of the FOIA. Information in the submission about any APRA-regulated entity that is not in the public domain and that is identified as confidential will be protected by section 56 of the Australian Prudential Regulation Authority Act 1998 and will therefore be exempt from production under the FOIA.