Recommendation 1.12 – Valuation of land
On 25 March 2019, APRA released for public consultation proposed revisions of Prudential Standard APS 220 Credit Quality. Consultation closed on 28 June 2019. APRA intends to finalise the standard in the second half of 2019 with a view to it becoming effective from 1 July 2020.
Recommendation 1.17 – BEAR product responsibility
On 28 June 2019, APRA released for consultation a proposed heightened product accountability regime, which requires ADIs to identify and register accountable persons to hold end-to-end product responsibility for each product the ADI offers to its customers. APRA will aim to release a draft schedule with the proposed product responsibility requirements for further consultation in October 2019, and the final legislative instrument in December 2019. APRA expects to implement the new requirements by 1 July 2020.
Recommendation 4.14 – Additional scrutiny for related party engagements
Recommendation 4.15 – Status attribution to be fair and reasonable
APRA has completed and published a post-implementation review of the superannuation prudential framework, and will address these recommendations as part of the implementation of the findings of that review. Consultation on revised standards will take place throughout 2020.
Recommendation 5.1 – Supervision of remuneration (principles, standards and guidance)
Recommendation 5.2 – Supervision of remuneration (aims)
Recommendation 5.3 – Revised prudential standards and guidance
On 23 July 2019, APRA released a discussion paper and draft prudential standard to strengthen remuneration practices across all APRA‑regulated entities. Consultation on the proposed reforms will take place until late October 2019.
Recommendation 5.7 – Supervision of culture and governance
Issues of culture and governance are priority areas for APRA. APRA is reviewing its program of work to enhance its regulatory and supervisory approach in these areas, following the Government’s announcement of additional funding as part of the 2019-20 Budget. APRA intends to publish a statement of its approach by the end of 2019.
Recommendation 6.10 – Co‑operation memorandum
APRA and ASIC are reviewing the cooperation and coordination arrangements between the two agencies, including revising the existing Memorandum of Understanding. This review is expected to be completed by 2019.
Recommendation 6.12 – Application of the BEAR to regulators
APRA will implement this recommendation in anticipation of the Government’s establishment of the external oversight authority. APRA is expecting to develop and publish accountability statements before the end of 2019.