On 12 September 2011, the Australian Prudential Regulation Authority (APRA) released in final form four prudential standards — on governance, fitness and propriety, outsourcing and business continuity management — that will consolidate and replace 12 existing standards across the authorised deposit-taking (ADI), general insurance and life insurance industries.
These standards include the standards that regulate remuneration.
Known as CPS 510, it will replace APS 510 (for ADIs), GPS 510 (for general insurers) and LPS 510 (for life insurers).
The consolidated standards closely reflect the existing industry-specific prudential standards, with minor amendments to clarify requirements and ensure consistent application across industries. The consolidated standards recognise that, on behavioural matters, the risks facing regulated institutions in each of these industries are very similar.
APRA has sought to apply a consistent, harmonised approach to the setting of prudential requirements for regulated institutions, where appropriate. Harmonisation simplifies compliance, particularly for groups that operate across regulated industries.
There is very little change in the regulations that pertain to remuneration. The only changes have been, in effect, to clarify wording.
Drafts of the four consolidated prudential standards were released in December 2010 for industry consultation.
The consolidated standards as they effect remuneration matters will be effective from 1 July 2012. For ADIs, life insurers and general insurers they can be found HERE© Guerdon Associates 2024 Back to all articles