Australia

Details

  • Service: Advisory, Risk Consulting, Topics, Financial Services Regulation
  • Industry: Financial Services, Banking, Investment Management, Insurance
  • Type: Business and industry issue
  • Date: 20/05/2013

APRA Conglomerates Policy and Risk Management Requirements 

APRA has released its final set of Conglomerates Policy proposals and also additional harmonised cross-industry Risk Management Prudential requirements. KPMG’s summary addresses both updates and outlines the key implications.

Key insights

  • A package of proposed requirements for conglomerate groups covering risk management and capital adequacy determination.
  • APRA described its conglomerate framework as affecting no more than a dozen Australian financial groups (covering banking and insurance groups).
  • APRA has not yet publicly identified these groups but described them as covering the majority of Australia’s prudentially regulated assets.
  • Harmonisation requirements impact all Level 1, Level 2 and Level 3 APRA regulated entities. These include requirements for a CRO and the content of risk management declarations to APRA.
  • Modification of CPS 510 Governance to require the establishment of a separate Board Risk Committee including detail of its responsibilities.
 

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