APRA has published an updated Prudential Standard CPS 510 Governance to remove existing requirements relating to remuneration, including those detailing requirements in relation to Board Remuneration Committees and Remuneration policies, currently set out in CPS 510 and SPS 510, which will become redundant as these matters will be covered by new requirements in Prudential Standard CPS 511 Remuneration (CPS 511) which commences on 1 January 2023.

CPS 511, while commencing on 1 January 2023, will apply in stages to different types of APRA-regulated entities.

Accordingly, the CPS 510 amendments apply to:

• ADIs and authorised banking NOHCs that are significant financial institutions (SFIs) as defined in APRA’s definitions prudential standards, or a group headed by such an ADI or authorised banking NOHC from 1 January 2023; and
• general insurers, life companies and private health insurers that are SFIs, groups headed by such entities and groups headed by authorised insurance NOHCs, parent entities of Level 2 insurance groups or registered life NOHCs that are SFIs from 1 July 2023.

The new SPS 510 will apply to RSE licensees that are SFIs from 1 July 2023.

APRA guide for bank board directors
APRA has published its first handbook aimed at helping the directors of banks, credit unions and building societies to understand and comply with APRA’s regulatory requirements.

The Guide for ADI Directors includes an excel version that lists the source of each individual obligation.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.