APRA has released three prudential standards and eight reporting standards applicable to Level 2 insurance groups.

The prudential standards are effective on 1 December 2011 and the reporting standards are effective for reporting periods commencing on or after 1 July 2011. The first half-yearly reporting on the revised basis will be for the period ending 31 December 2011 and is due on 31 March 2012.

The policy position in the final prudential and reporting standards is largely consistent with APRA’s proposals in the discussion paper. APRA has implemented the refinements to the definition of a Level 2 insurance group, actuarial matters, intra-group exposures and remuneration schemes. APRA has amended its approach to governing law requirements.