POWERED BY MOMENTUM MEDIA
Extra breathing space on risk management
Insurance companies and other institutions will receive a 12-month transition period on implementing the Australian Prudential Regulation Authority's (ARPA's) risk management requirements, the regulator has announced.
In its letter to authorised deposit-taking institutions (ADIs), general insurers and life companies, APRA referred to a paper it released in May which proposed a cross-industry prudential standard to harmonise, consolidate and enhance its risk management requirements.
The regulator proposed that these changes would be effective from 1 January next year. However, it decided to provide the industry with extra breathing space, it announced.
"Further, submissions received identified several practical constraints to implementing these enhancements by 1 January 2014. APRA acknowledges these concerns," the letter read.
"APRA still proposes to respond to submissions and finalise the prudential standards by 1 January 2014 but the standards will not be fully effective until 1 January 2015."
Despite the 12-month transition period, APRA said it expected all affected entities and groups to develop and introduce implementation plans to ensure they are able to meet all requirements by the proposed date.
"APRA will monitor the progress of these implementation plans," the regulator said. "APRA considers this additional 12-month transition period will provide the industry with sufficient time to comply fully with the proposed enhancements."
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The insurance company has joined this year’s awards as a principal partner.
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
