Mackay Chapman June 2023 APRA Update

In this month’s APRA update:

• APRA considers recent bank failures overseas and what this means in terms of key regulatory impacts; 
• APRA quarterly general insurance performance statistics publications have been released for the March 2023 quarter; 
• New requirements and guidance aimed at strengthening the preparedness of banks, insurers and superannuation funds to respond to a crisis; and
• Findings from reviews of amendments to the SGAA and YSYC Act released.

‍

Implications of recent overseas bank failures

In this interesting opinion piece, APRA discusses the recent bank failures in the US and Switzerland and some of the key regulatory impacts. 

The article comments on APRA’s capital adequacy rules and how banks are allowed to calculate their risk capital requirements. 

See more here.

‍

March 2023 quarter general insurance performance 

APRA has released its quarterly general insurance performance statistics and quarterly general insurance institution-level statistics publications for the March 2023 quarter.

The quarterly general insurance performance statistics publication provides summaries of financial performance, financial position, capital adequacy and key ratios. 

The publication also includes detailed statistics at a class-of-business level, a breakdown of operating income and expenses, and more granular solvency information.

See more here.

‍

Strengthening the preparedness of banks, insurers and superannuation funds to respond to a crisis

New requirements and guidance aimed at strengthening the preparedness of banks, insurers and superannuation funds to respond to a crisis have been finalised by APRA.

APRA commenced consultation in December 2021 on two new prudential standards, designed to improve recovery and resolution planning among APRA-regulated entities.

The reforms are the culmination of several years of policy development to ensure the financial system is better prepared to manage periods of stress.

See more here.

‍

APRA releases findings from reviews of amendments to the SGAA and YSYC Act

Findings have been released from a review of the amendments to the Superannuation Guarantee (Administration) Act 1992 (SGAA), introduced by the Treasury Laws Amendment (Your Superannuation, Your Choice) Act 2020 (YSYC Act).

Following the requirement of the YSYC Act to review the operation of the amendments to the SGAA, APRA has produced a report on the unintended consequences of these amendments for defined benefit (DB) schemes, including the ongoing viability and profitability of these schemes.

See 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.