Strengthening crisis preparedness
APRA is consulting on new prudential standards to strengthen the preparedness of banks, insurers and superannuation trustees to respond to future financial crises.
May 2023
On 18 May 2023, APRA released a final prudential standard and two prudential practice guides aimed at strengthening the preparedness of banks, insurers and superannuation funds to respond to a crisis.
The media release on this publication can be found at: APRA finalises reforms aimed at strengthening recovery and resolution planning.
The letter to industry, final prudential standard and guides, and non-confidential submissions can be found below:
Letter
Recovery and resolution planning
Prudential standard
Published 18 May 2023 | Published 18 May 2023 |
Prudential practice guide
Published 18 May 2023 | Published 18 May 2023 |
Published 18 May 2023 | Published 18 May 2023 |
Non-confidential submissions
December 2022
On 1 December 2022, APRA released final Prudential Standard CPS 190 Recovery and Exit Planning (CPS 190), and its response letter to the consultation on the draft standard (previously released in December 2021).
CPS 190 will come into effect from 1 January 2024 for banks and insurers, and from 1 January 2025 for RSE licensees.
The letter to industry, clean and marked up versions of the new prudential standard and non-confidential submissions can be found below:
Letter
Prudential standard
Published 1 December 2022 | Published 1 December 2022 |
Non-confidential submissions
September 2022
On 6 September 2022, APRA released for consultation draft guidance on financial contingency and resolution planning.
Prudential Practice Guides CPG 190 Financial Contingency Planning and CPG 900 Resolution Planning set out principles and examples of better practice to assist entities in meeting their requirements under the proposed new prudential standards, CPS 190 Financial Contingency Planning and CPS 900 Resolution Planning.
Written submissions are requested by 6 December 2022.
The letter to industry and draft guidance can be found below:
Media release: APRA consults on guidance for financial contingency and resolution planning.
Letter
Consultation on draft guidance for financial contingency and resolution planning
Prudential Practice Guides
Published 6 September 2022 | Published 6 September 2022 |
Published 6 September 2022 | Published 6 September 2022 |
December 2021
On 2 December 2021, APRA released for consultation a discussion paper and two draft prudential standards to strengthen crisis preparedness across banks, insurers and superannuation trustees.
Draft Prudential Standard CPS 190 Financial Contingency Planning introduces requirements for all APRA-regulated entities to develop contingency plans to respond to financial stress by either recovering their financial resilience or exiting APRA-regulated activities in an orderly manner.
Draft Prudential Standard CPS 900 Resolution Planning requires large or complex entities, or those that provide critical functions to the economy, to be prepared for resolution to minimise the impact on the community and the financial system.
Written submissions are requested by 29 April 2022.
The discussion paper and draft prudential standards can be found below:
Discussion paper
Draft prudential standards
Note on submissions
It is APRA's policy to publish all submissions on the APRA website unless the respondent specifically tells APRA in writing that all or part of the submission is to remain confidential. An automatically generated confidentiality statement in an email does not satisfy this purpose. If you would like only part of your submission to be confidential, you should provide this information marked as 'confidential' in a separate attachment.
Submissions may be the subject of a request for access made under the Freedom of Information Act 1982 (FOIA). APRA will determine such requests, if any, in accordance with the provisions of the FOIA. Information in the submission about any APRA-regulated entity that is not in the public domain and that is identified as confidential will be protected by section 56 of the Australian Prudential Regulation Authority Act 1998 and will therefore be exempt from production under the FOIA.