APRA update on Financial Services Royal Commission recommendations

The Australian Prudential Regulation Authority (APRA) has issued an update on its implementation of the 10 recommendations directed at APRA in the Financial Services Royal Commission Final Report.

APRA says it is on track to meet all of the timelines on each of the recommendations assigned to it.

The changes include:

  • amendment of Prudential Standard APS 220 on security valuations;
  • requirements for accountability under the BEAR for product management and customer remediation;
  • amendment of  Prudential Standard SPS 250 to strengthen requirements on superannuation trustees when selecting an insurer, especially when a potential insurer is a related party;
  •  amendment of Prudential Standard SPS 250 to require registrable superannuation entity (RSE) licensees to be satisfied that the rules by which a particular status is attributed to a member in connection with insurance are fair and reasonable;
  • draft Prudential Standard CPS 511 Remuneration to give guidance in relation to sound remuneration principles and practices, including in relation to misconduct, compliance and other non-financial risks;
  • APRA to publish a statement of an enhanced approach to the supervision of governance, culture, remuneration and accountability within regulated institutions’
  •  APRA and ASIC are progressing work on an updated MOU containing more formal arrangements for inter-agency coordination.
  • APRA is developing for itself accountability statements of the kind required under BEAR.
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