Mackay Chapman August 2024 APRA Update

In this month’s APRA update:

• APRA releases response to the consultation on minor amendments to a prudential framework for ADIs and insurers;
• APRA imposes additional license conditions on Fiducian;
• APRA and ASIC issue final rules and information for the Financial Accountability Regime;
• APRA strengthens core prudential standards to support outcomes for members in super; and
• APRA releases the new digital Prudential Handbook.

APRA Releases Response to Consultation on Minor Amendments to Prudential Framework for ADIs and Insurers 

APRA has released the final version of minor amendments to prudential standards for banks and insurers. These changes aim to update the regulatory framework without requiring comprehensive reviews.

The updated standards and further details are available on the APRA website.

‍APRA Imposes Additional Licence Conditions on Fiducian

APRA has imposed stricter conditions on Fiducian Portfolio Services Limited due to concerns over data accuracy. 

The superannuation fund trustee must undergo an independent data review and implement corrective measures before submitting data for the annual performance test. APRA emphasised the importance of accurate data for ensuring transparency and accountability in the superannuation industry.

APRA and ASIC Issue Final Rules and Information for the Financial Accountability Regime

APRA and the Australian Securities and Investments Commission (ASIC) have published final guidelines to assist insurers and superannuation trustees in preparing for the Financial Accountability Regime (FAR). The FAR, which aims to strengthen risk governance in the financial sector, will apply to the insurance and superannuation industries starting in March 2025.

The new information includes updated rules, guidance documents, and templates to help industry participants understand and comply with their obligations under the FAR.

More here.

APRA Strengthens Core Prudential Standard to Support Outcomes for Members in Super

APRA has strengthened its rules for superannuation trustees, emphasising member outcomes and expenditure management more. The updated regulations require trustees to prioritise members' interests in strategic planning and business operations.

APRA will also closely monitor fund expenditures to ensure they align with members' best interests. The regulator will collect and analyse detailed spending data and follow up with funds that have excessive discretionary expenses.

These changes aim to improve transparency and accountability in the superannuation industry.

A copy of the consultation response paper and links to the updated standard and guidance are available on the APRA website at Strategic planning and member outcomes: proposed enhancements.

‍APRA Releases the New Digital Prudential Handbook

APRA has introduced a new digital platform consolidating all prudential standards, guidance, and supporting information. 

This comprehensive resource, known as the Prudential Handbook, is designed to improve accessibility and usability for regulated entities and the public. The handbook is part of APRA's ongoing efforts to modernise its regulatory framework.

The letter is available on APRA website at: APRA’s new digital Prudential Handbook.

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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.