APRA's welcome transitional relief to Basel III counterparty credit risk measures implementation 22 Nov APRA's welcome transitional relief to Basel III counterparty credit risk measures implementation by Louise McCoach The updated implementation timeframe will permit ADIs to prepare counterparty credit risk capital calculations on a "best endeavours" basis until their first annual reporting period beginning on or after 1 July Transitional relief One of the issues raised in the August Paper related to the timing for implementing the new counterparty credit risk rules, which APRA proposed would take effect from 1 January In response to several submissions requesting that APRA consider transitional relief, the paper outlines an updated implementation timeframe which will permit ADIs to prepare counterparty credit risk capital calculations on a "best endeavours" basis until their first annual reporting period beginning on or after 1 July In addition, given that the central counterparty CCP supervision regime necessary to achieve qualifying status may not be in place from 1 JanuaryAPRA will consider allowing transitional arrangements when considering the qualifying status of central counterparties, where it is satisfied that such arrangements raise no prudential concerns.
Australia August 7 Summary Prudential Standard SPS came into force on 1 July imposing new obligations in relation to outsourcing of material business activity. We consider what a trustee should do to satisfy APRA that it has appropriately assessed the outsourcing of a material business activity.
SPS applies to the outsourcing of a material business activity by a trustee under the Superannuation Industry Supervision Act Timing SPS applies to the following arrangements for outsourcing of material business activities by trustees: Outsourcing Outsourcing involves a trustee entering into an arrangement with another party to perform, on a continuing basis, a business activity that is or could be undertaken by the trustee itself.
APRA has previously given guidance in a set of frequently asked questions as to types of activities that may or may not constitute outsourcing. For example, APRA considers that the following would constitute outsourcing: Under those guidelines, APRA is of the view that the issue of an investment product such as an interest in a private equity or debt fund to a trustee is not an outsourcing.
APRA expects trustees to treat the activity as such and comply with the Standard. Material business activity A material business activity is one that has the potential, if disrupted, to have a significant impact on: Steps to be taken In order to satisfy APRA that a trustee has appropriately assessed the outsourcing of a material business activity, the trustee must be able to show that it has, among other things: Legal form and content An outsourcing of a material business activity by a trustee must be contained in a legally enforceable document signed by all parties to it before the outsourcing commences.
The document must cover a range of matters as required by SPS Streamlining breach reporting (Joint publication with APRA) October • Prudential Standard; • direction given by APRA; or • condition of the institution’s licence or authority.
• a consistent time limit of ten business days for reporting signiﬁcant breaches to both APRA and. Video: 'It tells us a fair bit about the way big banks are run' Peter Ryan on APRA report (ABC News) This is what happens when compliance culture breaks down, which in turn is a function of.
adjust or exclude a specific prudential requirement in this Prudential Standard in relation to that regulated institution. materially affect the business operations. or an appropriate external expert. the existing requirements contained in Prudential Standard APS Outsourcing (APS ).
This Reporting Standard outlines the requirements for the provision of information to APRA relating to an authorised deposit-taking institution’s or registered financial corporation’s business credit stocks, flows and interest rates. Australian Prudential Standard APS 'Public Disclosure', requires ADI's to undertake periodic disclosure of information on their capital adequacy, capital instrument and remuneration practices to contribute to the transparency of financial markets and to enhance market discipline.
Prudential Standard APS Business Continuity Management when completing the risk management declaration provided to APRA on an annual basis; • an ADI must identify, on a whole of business basis, critical business functions, Reporting (APS Audit and Related Arrangements for Prudential Reporting).