Mackay Chapman January & February 2024 APRA Update
In this month’s APRA update:
- APRA is to cease several ad hoc data collections for authorised ADIs;
- APRA releases annual superannuation statistics publications for 2023;
- APRA and ASIC release an update on premium increases in the life insurance industry;
- Prudential practice guides on the risk management framework for life and general insurers is retired;
- APRA begins consultation on minor and consequential amendments to the superannuation prudential framework; and
- APRA releases Monthly Authorised Deposit-taking Institution Statistics for November 2023.
APRA announces it will cease several of its ad hoc data collections for authorised ADIS
APRA has declared the discontinuation of various ad hoc data collections for authorised deposit-taking institutions (ADIs), including several linked to COVID-19. APRA will maintain ongoing assessments of individual data collections to ensure alignment with supervisory objectives.
The regulatory authority emphasises the importance of industry feedback and expresses commitment to exploring methods for streamlining and automating the data collection process.
The official communication to ADIs regarding the cessation of specific ad hoc data collection is accessible on the APRA website under the title "Ceasing several ad hoc data collections."
APRA releases annual superannuation statistics publications for 2023
APRA has published the 2023 Annual Fund-Level Superannuation Statistics and Annual MySuper Statistics reports, offering comprehensive insights into profile, structure, financial performance, conditions of release, fees, and membership details.
The Annual Fund-Level Superannuation Statistics report is accessible on the APRA website under "Annual fund-level superannuation statistics."
The Annual MySuper Statistics report is also available on the APRA website under "Annual MySuper statistics."
APRA and ASIC release an update on premium increases in the life insurance industry
APRA and ASIC have issued a joint update to life insurers and friendly societies (life companies) regarding premium increases in the life insurance sector.
The letter, released 14 December 2023, addresses life companies' assessments of previous premium hikes, disclosure practices, and marketing materials, as requested by APRA and ASIC in December 2022.
The communication outlines the regulatory expectations and observations of APRA and ASIC concerning these premium increases, disclosure and marketing materials, and product design.
You can find the letter to the industry on the APRA website under "Premium increases in life insurance."
Prudential practice guides on the risk management framework for life and general insurers is retired
APRA has officially retired two obsolete Prudential Practice Guides related to the risk management framework for general and life insurers.
The decision to phase out Prudential Practice Guide GPG 250 Balance Sheet and Market Risk (GPG 250) and Prudential Practice Guide LPG 250 Asset and Liability Management Risk (LPG 250) aligns with APRA's strategic initiative to modernise the prudential architecture.
The move aims to eliminate outdated guidance that no longer provides meaningful value in understanding current prudential requirements.
Risks covered by GPG 250 and LPG 250 are now addressed by the stipulations in Prudential Standard CPS 220 Risk Management, supported by Prudential Practice Guide CPG 220 Risk Management.
The detailed communication to the industry is accessible on the APRA website under "Retirement of GPG 250 and LPG 250."
APRA commences consultation on minor and consequential amendments to the superannuation prudential framework
APRA is seeking input on minor and consequential adjustments to the superannuation prudential framework.
The proposed changes align with financial reporting and auditing reforms for superannuation as outlined in the Treasury Laws Amendment (2022 Measures No. 4) Act 2023.
APRA released a consultation letter on 17 January 2024, providing details of the proposed amendments.
Stakeholders are invited to submit their feedback during the six-week consultation period, which concludes on 28 February 2024.
The consultation materials, including the letter and draft prudential standards, are accessible on the APRA website under "Audit consequential amendments – superannuation."
APRA releases Monthly Authorised Deposit-taking Institution Statistics for November 2023
APRA has recently issued its Monthly Authorised Deposit-taking Institution Statistics (MADIS) publication for November 2023. This regular release by APRA serves as a crucial source of information for analysing and understanding the financial performance and health of ADIs in Australia.
The MADIS publication encompasses a wide range of statistical data, providing insights into key aspects such as the financial position, assets, liabilities, and other vital indicators of ADIs.
Stakeholders, including regulators, financial analysts, and industry experts, often rely on this data to assess the overall stability and functioning of the banking sector in the country.
For those interested in conducting in-depth analyses or staying abreast of the latest trends and developments in the financial landscape, accessing the November 2023 MADIS publication on the APRA website is essential.
Copies of the November 2023 monthly publication are available on the APRA website at: Monthly Authorised Deposit-taking Institution Statistics publication.
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.
