Mackay Chapman March 2024 APRA Update
In this month’s APRA update:
- APRA consults on proposed amendments to the operational risk financial requirement for superannuation;
- The Federal Court grants injunction to stop another unauthorised banking business;
- APRA releases official Monthly Authorised Deposit-taking Institution Statistics for January 2024;
- APRA releases quarterly private health insurance statistics for December 2023; and
- APRA releases superannuation statistics for December 2023.
APRA Consults on Proposed Amendments to the Operational Risk Financial Requirement for Superannuation
APRA has released for consultation proposed amendments to Prudential Standard SPS 114 operational risk financial requirement and its associated guidance.
The consultation follows APRA’s November 2022 Discussion Paper – Financial resources for risk events in superannuation, and is open for submissions for three months until 13 May 2024.
More can be found here.
Federal Court Grants Injunction to Stop Another Unauthorised Banking Business
APRA has secured a court injunction to prevent an individual, Robert Bruce Gray, from conducting unauthorised banking business and using the term "bank" without a licence.
APRA initiated legal action in the Federal Court to restrain Gray from operating businesses described as banks, such as Commercial Development Bank and Creditnet Bank Internationale, without proper authorisation.
Justice Shariff issued orders permanently restraining Gray from engaging in banking business, using the term "bank" in connection with his businesses, and advertising banking services. Gray, who did not participate in the proceedings, is also liable for APRA's costs.
The Banking Act 1959 restricts banking activities to authorised deposit-taking institutions (ADIs) licensed by APRA, ensuring consumer protection and financial stability. This marks APRA's second successful court action to halt unauthorised banking activities, demonstrating its commitment to safeguarding consumers' financial interests.
Deputy Chair Margaret Cole advised consumers to verify the credentials of businesses claiming to be banks before making deposits, emphasising the protection provided by APRA-regulated banks under the Financial Claims Scheme (FCS).
More information can be found here.
APRA Releases Monthly Authorised Deposit-taking Institution Statistics for January 2024
APRA has released its monthly Authorised Deposit-taking Institution statistics for January 2024 with copies o available on the APRA website at: Monthly Authorised Deposit-taking Institution Statistics publication.
APRA Releases Quarterly Private Health Insurance Statistics for December 2023
APRA has published its quarterly report on private health insurance (PHI) for the December 2023 quarter.
This release focuses on various statistics concerning membership, coverage, benefits paid, medical gap, prostheses, and medical services exclusively.
You can access the December 2023 PHI statistical publication at the following link.
APRA releases superannuation statistics for December 2023
APRA has released its Quarterly Superannuation Performance publication and the Quarterly MySuper Statistics report for the December 2023 quarter.
Total superannuation assets as of December 2023 increased by 10.0% compared to the previous year, driven by strong contribution inflows and a 9.5% rate of return.
Contributions rose by 11.7% to $172.6 billion, with employer contributions increasing by 13.0%.
Benefit payments increased by 21.5% to $111.1 billion, largely due to a rise in lump sum payments.
The publication also provides key statistics for entities with more than six members, showing changes in total contributions, benefit payments, and net contribution flows. Access to the publication is available on APRA’s 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.
