Mackay Chapman July 2023 APRA Update
In this month’s APRA update:
- APRA has launched a new statistical publication to provide greater transparency across the superannuation industry.
- More than 300 banks, insurers and superannuation trustees will have participated in an independent tripartite cyber assessment by the end of 2023.
- APRA has announced that it has taken action against Medibank Private, following an APRA review of its major cyber incident in October 2022.
APRA’s new super publication puts product-level data in focus
APRA has launched a new statistical publication to provide greater transparency across the superannuation industry.
The Quarterly Superannuation Product Statistics publication lists all superannuation products offered by each APRA-regulated superannuation fund, as well as granular information on fees and costs, investment performance, investment strategy and asset allocation for a range of products and investment options.
Read the publication here.
Cyber security stocktake exposes gaps
More than 300 banks, insurers and superannuation trustees will have participated in an independent tripartite cyber assessment by the end of 2023 - the largest study of its kind to be conducted by APRA.
The assessment required APRA’s regulated entities to appoint an independent auditor to assess their compliance with prudential standard CPS 234 Information Security. The purpose of the standard is to ensure that regulated entities have baseline prevention, detection and response capability to withstand cyber security threats.
Read more about the assessment here.
APRA takes action against Medibank Private in relation to cyber incident
APRA has announced that it has taken action against Medibank Private, following an APRA review of Medibank Private’s major cyber incident in October 2022. APRA will impose an increase in Medibank’s capital adequacy requirement of $250 million, reflecting weaknesses identified in Medibank’s information security environment.
The capital adjustment, effective from 1 July 2023, is applied to Medibank’s operational risk charge under the new Private Health Insurance (PHI) Capital Framework.
Find out more here.
APRA publishes updates to FAQs on the Your Future, Your Super package
APRA has issued a set of new and updated frequently asked questions (FAQs) to provide further guidance on the administration of the Government’s Your Future, Your Super Performance Test.
The new and updated FAQs are available on the APRA website here.
APRA publishes update to FAQs on the Superannuation Data Transformation project
APRA has also updated an existing FAQ for the Superannuation Data Transformation (SDT) project.
The updated FAQ makes reference to APRA’s approach to the revocation of superannuation reporting standards, and SDT FAQs are available on the APRA website.
Read the updated FAQ here.
APRA releases latest stakeholder survey results
APRA’s 2023 Stakeholder Survey has delivered strong backing for its focus on enhancing risk management across the banking, insurance and superannuation industries.
Conducted every two years since 2009, the results of the survey have been released and received responses from 282 APRA-regulated entities – a response rate of 67 per cent.
The survey recorded strong support for APRA’s ongoing prudential supervisory role, with 98 percent of respondents saying it benefitted their industry, 94 percent agreeing that it helped protect the community, and 90 percent believing it enhanced the strength of their entity.
Find out more here.
If any of the above is relevant to you or you want to know more, please feel free to get in touch.
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.
