APRA publishes updated frequently asked questions on the measurement of capital
The Australian Prudential Regulation Authority (APRA) has published an updated set of frequently asked questions (FAQs) on the measurement of capital for the authorised deposit-taking institution (ADI), general insurance (GI) and life insurance (LI) industries.
The FAQs released today assist ADI, GI and LI entities in complying with APS 111 Measurement of Capital (APS 111), GPS 112 Measurement of Capital (GPS 112) and LPS 112 Measurement of Capital (LPS 112) with respect to the issuance of eligible common equity tier 1 capital instruments, additional tier 1 capital instruments and tier 2 capital instruments.
Whilst the FAQs do not currently apply to capital instruments issued by private health insurers, they do provide such insurers guidance on APRA’s expectations on the capital instrument eligibility assessment process.
The FAQs will be reviewed and updated when the AASB 17 Insurance Contracts (AASB 17) and Life and General Insurance Capital (LAGIC) framework updates to GPS 112 and LPS 112 are finalised.
The FAQs are available on the APRA website at: Measurement of capital – frequently asked questions.
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The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.