APRA unveils digital Prudential Handbook to simplify compliance
APRA unveils digital Prudential Handbook to simplify compliance | Insurance Business Australia
Insurance News
APRA unveils digital Prudential Handbook to simplify compliance
Industry feedback needed
Insurance News
By
Roxanne Libatique
The Australian Prudential Regulation Authority (APRA) has launched a new digital prudential framework known as the “Prudential Handbook.”
This new resource consolidates APRA’s prudential standards, guidance, and related information into a single, easily navigable digital format. This development is part of the regulator’s strategy to modernise the prudential architecture (MPA).
APRA’s MPA initiative
The MPA initiative, which has been in progress for several years, aims to make APRA’s prudential framework simpler and more adaptable. Key aspects of this initiative include:
refining the design of the framework
adopting a digital-first approach
creating integrated regulations for emerging risks
The overarching goal is to improve the industry’s understanding and compliance, thus enhancing regulatory supervision.
APRA’s online Prudential Handbook
The Prudential Handbook, now available through APRA’s website, will operate alongside the current site for a few months to facilitate a smooth transition.
The handbook comprises legally binding prudential and reporting standards along with supporting guidance such as prudential practice guides. It applies to insurance, banking, and superannuation industries, and includes cross-industry standards.
Online Prudential Handbook’s pillars
Functioning as a comprehensive repository, the Prudential Handbook organises all APRA prudential standards and guidance into distinct pillars. These pillars focus on:
governance
risk management
financial resilience
business operations
recovery and resolution planning
reporting
This structure aims to clarify how the various elements of the framework interconnect.
APRA seeks feedback
APRA is seeking feedback from the industry and the broader community, with engagement sessions scheduled for early July.
The final version of the handbook is expected by the end of July, with ongoing updates based on user input.
The blueprint aims to help insurers, banks, and superannuation trustees to enhance their operational risk management and business continuity planning. It focuses on enhancing the resilience of critical operations and improving third-party risk management.
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