The Australian Prudential Regulation Authority (APRA) has released for consultation revised draft “fit and proper” standards and guidance notes for authorised deposit taking institutions, general insurance and life insurance institutions.
The package outlines proposals for APRA-regulated institutions to:
be responsible for assessing the fitness and propriety of persons to act as a director, senior manager, auditor or actuary;
develop and document appropriate policies for making fit and proper assessments;
require responsible persons to co-operate in the process of gathering information for such assessments; and
inform APRA of changes in responsible persons.
APRA’s Chairman, Dr John Laker, said that the proposed standards make clear that it is the responsibility of each APRA-regulated institution to ensure that persons who fill positions of responsibility are fit and proper. APRA will only become involved when it has specific concerns
about an individual and the institution concerned cannot or will not take action to overcome the problem.
Comments close on 24 August 2005.