The Australian Prudential Regulation Authority (APRA) is seeking feedback on new cross-industry standard to centralise existing standards on definitions for general, life, and private health insurers and authorised deposit-taking institutions (ADIs).
APRA proposed new prudential standard CPS 001 Defined terms (CPS 001) to modernise the prudential architecture by removing unnecessary or unused terms, addressing duplication, and consolidating existing definitions across different standards.
In a letter, APRA executive director for policy and advice Clare Gibney said the proposed standard does not introduce new defined terms; it only consolidates existing definitions into one place.
“This has been important to remove terms that are no longer used in the prudential standards and to address some duplication in definitions across different standards. At a future point, CPS 001 will be updated to reflect new or changing definitions,” Gibney said. “The single consolidated standard is also important in supporting the development of a digital framework, which will bring together all of APRA's prudential standards, guidance, and supporting information into a dynamic format that can be searched and navigated easily. The digital framework is under development this year for release in the second half of 2024.”
APRA seeks insurer and ADI feedback on draft CPS 001 and its accompanying excel version, and whether these could help APRA-regulated entities navigate the defined terms.
Submissions must be sent to [email protected] by March 13, 2024, and addressed to the General Manager, Policy, APRA.
APRA expects the finalised CPS 001 to take effect on July 1, 2024.
Meanwhile, Helen Rowell, the former deputy of the APRA, will lead an independent review of the 2020 General Insurance Code of Practice.
