APRA has issued for consultation a discussion paper and four draft cross-industry prudential standards that consolidate and harmonise prudential standards covering cover outsourcing, business continuity management, governance and fitness and propriety across all APRA-regulated industries.

The four draft standards will replace 12 current industry-specific standards relating to authorised deposit-taking institutions, general insurers, life companies and authorised or registered non-operating holding companies.

APRA says that the draft standards largely reflect the current industry-specific prudential standards and APRA does not propose to revisit the substance of these standards. However, some amendments are proposed in order to harmonise and clarify the current requirements across the industries; these amendments are detailed in the discussion paper.

Comments are invited on the proposals to release cross-industry standards and any transitional issues relating to the proposals. Submissions on the discussion paper and draft prudential standards are due by 25 March 2011. Subject to industry feedback, APRA will release the final prudential standards in mid 2011. APRA envisages that the final standards will be effective from 1 July 2011.