The Australian Prudential Regulation Authority (APRA) has released the final version of its prudential requirements on remuneration for authorised deposit‑taking institutions (ADIs) and general and life insurance companies.
The relevant industry governance standards (APS 510, GPS 510 and LPS 510) and an associated prudential practice guide (PPG 511) have now been published, along with a response paper to the second round of consultation that explains further modifications made in response to submissions and other feedback.
Some details in relation to foreign branches and to the coverage of different groups of persons have been modified.
The revised governance standards will come into effect on 1 April 2010. By this date, APRA requires that the Board Remuneration Committee, with appropriate composition and charter, will be established and a suitable Remuneration Policy will be in place.