APRA amends remuneration disclosure requirements for banks

To oblige Financial Stability Board international guidelines, APRA requires regulated banks to publicly disclose quantitative and qualitative information on their approach to remuneration, including aggregate information on the remuneration of their senior managers and material risk-takers.

On 22 July 2015, the Australian Prudential Regulation Authority (APRA) released a revised version of Prudential Standard APS 330 Public Disclosure (see HERE), which rectifies an omission in the earlier version of APS 330 (see HERE). The revised version of APS 330 will take effect from 1 August 2015.

The omission was in paragraph 21(b) of the July 2015 version of APS 330 and had the effect of altering the definition of ‘material risk-taker’ for the purposes of the remuneration disclosure requirements in APS 330. APRA forgot to exclude “responsible persons and risk and financial control personnel” (as defined under APRA’s CPS 510) from the definition of ‘material risk taker.’

This omission would have imposed quantitative remuneration disclosure requirements on a wider range of persons than APRA intended.

The revised APS 330 amends paragraph 21(b) to align the definition of ‘material risk-taker’ with the definition used in the earlier version of APS 330. No other substantive changes have been made.

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