Remaking Level 3 conglomerate standards

To: All Level 3 conglomerate groups

The Australian Prudential Regulation Authority (APRA) is consulting on remaking the Level 3 conglomerate standards with minor administrative updates to ensure they remain current and consistent across APRA’s suite of prudential standards.

The remake is necessary as the standards are set to expire on 1 October 2026 and must be remade to remain in force. The updates are administrative and include updating references and inserting an interpretation paragraph and a previous exercise of discretion paragraph. These updates do not impose new requirements on Level 3 conglomerate groups.

The Level 3 conglomerate standards are:

• Prudential Standard 3PS 310 Audit and Related Matters
• Prudential Standard 3PS 221 Aggregate Risk Exposures
• Prudential Standard 3PS 222 Intra-group Transactions and Exposures.

The Level 3 conglomerate standards apply to level 3 groups determined by APRA. The standards set requirements for Level 3 groups to manage risks to which APRA-regulated institutions within a conglomerate group are exposed and which are not adequately captured by the existing prudential framework. The content of the corresponding prudential practice guides 3PG 221 Aggregate Risk Exposures and 3PG 222 Intragroup Transactions and Exposures remains unchanged.

The amended Level 3 conglomerate standards are available on APRA’s website at: Remaking Level 3 conglomerate standards

Submissions should be sent to PolicyDevelopment@apra.gov.au by 29 May 2026 and addressed to the General Manager, Policy. APRA may publish submissions on its website. If you wish your submission to remain confidential, please clearly indicate this when providing your response.

Yours sincerely

Sean Carmody
Executive Director
Policy and Advice Division