Mackay Chapman April 2025 APRA Update

In this month’s APRA update:

• APRA makes minor changes to reporting standards;
• Chair John Lonsdale’s speech to the AFR Banking Summit;
• Quarterly authorised deposit-taking institution statistics for December 2024;
• Updates to FAQs on superannuation data transformation; and
• APRA proposes changes to strengthen and streamline governance and fit and proper requirements.

APRA makes minor changes to reporting standards

On 19 March 2025, APRA announced that it had made minor updates to a few of its reporting standards to better align with the APRA Connect taxonomy. 

These changes affect reporting standard SRS 101.0, which deals with definitions for superannuation data collections; SRS 553.0, which covers investment exposure concentrations and valuations; and SRS 606.0, which relates to RSE profiles. 

These tweaks ensure greater clarity around reporting requirements and streamline the data collection process. 

To learn the specifics, check out the updated reporting standards on the APRA website under Phase 2 Depth.

Chair John Lonsdale’s speech to the AFR Banking Summit

On 18 March 2025, APRA Chair John Lonsdale delivered an insightful speech at the AFR Banking Summit, addressing the importance of governance in turbulent times. 

Mr Lonsdale began by drawing an analogy between preparing for a storm and the uncertainty leaders face due to global geopolitical tensions. He discussed how the evolving landscape (including potential trade wars, military conflicts, and challenges to financial regulations) creates significant uncertainty for decision-makers in the financial sector. Despite this, he highlighted the ongoing efforts to strengthen governance, particularly through APRA’s latest review of its prudential standards. 

The full speech can be found here.

Quarterly authorised deposit-taking institution statistics for December 2024

On 13 March 2025, APRA released its Quarterly Authorised Deposit-taking Institution (ADI) Performance and Quarterly ADI Property Exposures publications for the quarter ending 31 December 2024. 

These publications provide a comprehensive overview of ADIs' financial performance and asset quality, including key figures on profits, capital adequacy, and liquidity. They also include detailed data on residential and commercial property exposures, including trends in loan performance and new lending activity. 

For more details and to access the full reports, visit the APRA website.

Updates to FAQs on superannuation data transformation

APRA has updated its FAQs on the Superannuation Data Transformation (SDT) project. 

These updates include ten new FAQs, revisions to two existing ones, and two new worked examples to assist stakeholders. These additions aim to provide further clarity on the SDT project. 

For full details and to view the updated FAQs and examples, visit the APRA website.

APRA proposes changes to strengthen and streamline governance and fit and proper requirements

On 6 March 2025, APRA released eight proposals to strengthen the prudential governance framework for banks, insurers, and superannuation trustees. 

The proposed changes are designed to ensure APRA's governance standards align with contemporary best practice and set clear benchmarks for regulated entities. The changes address current weaknesses and seek to ensure that individuals lead institutions with the right skills, experience, and character. 

Key proposals include strengthening board governance, enhancing fitness and propriety standards, introducing a 10-year tenure limit for non-executive directors and streamlining APRA’s framework. 

APRA is seeking feedback from stakeholders during a three-month consultation period, with plans to release updated standards by early 2027. For more details, visit the APRA website.

The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such.  It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only.  You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have.