APRA has published the Banking, Insurance, Life Insurance and Health Insurance (prudential standard) determination No. 2 of 2019 which determines Prudential Standard CPS 510 Governance from 1 July 2019.
CPS 510 Governance sets out minimum foundations for good governance of an APRA-regulated institution in the deposit-taking, general insurance, life insurance and private health insurance industries, and of a Head of a group. Its objective is to ensure that an institution and group is managed soundly and prudently by a competent Board (or equivalent), which can make reasonable and impartial business judgments in the best interests of the institution and group and which duly considers the impact of its decisions on depositors and/or policyholders.
The Standard makes it clear that the ultimate responsibility for oversight of the sound and prudent management of an APRA-regulated institution rests with its board of directors (or equivalent). The ultimate responsibility for oversight of the sound and prudent management of a group lies with the Board of the Head of the group.