APRA has released for comment a consultation paper and draft amended prudential standard APS 330 relating to Basel Pillar 3 disclosures on the composition of capital and on remuneration by authorised deposit-taking institutions (ADIs) incorporated in Australia.

ADIs will be required to publish a reconciliation between their regulatory capital and financial statements. They will also need to disclose full details of the terms and conditions of each regulatory capital instrument and a summary of those instruments in a standard form. They are intended to be referenced or included in full in published financial statements and on an ADI’s website, unless APRA agrees otherwise.

In addition, APRA will be consulting on its proposed implementation of the Basel Committee’s requirements for ADIs to disclose qualitative and quantitative information about their remuneration practices and aggregate remuneration data for senior managers and material risk-takers. This is wider disclosure than that required under the Corporations Act.

APRA is proposing that it be open to a listed ADI to incorporate the APS 330 remuneration disclosure requirements into its Remuneration Report, provided that the disclosures made in relation to ‘key management personnel’ under the Corporations Act are clearly distinguished from the disclosures made under APS 330 for ‘senior managers’ and ‘material risk-takers’.

APRA is proposing that the requirements commence for the first reporting period on or after 30 June 2013.