APRA to issue executive conduct standards
By Jason Spits
TheAustralian Prudential Regulation Authority(APRA) is seeking to gauge public and industry opinion regarding ‘fit and proper’ prudential standards for life insurance executives.
The new standards will also apply to general insurance and authorised deposit taking institutions, and follows a similar regime being put in place separately for the superannuation industry through the Superannuation Safety Amendment Bill, currently before Federal Parliament.
As part of the proposals, APRA says institutions falling under its regulatory jurisdiction will have to develop their own policies that cover the assessment of the fitness and propriety of individuals to act in positions of responsibility.
These policies will address the ‘fit and proper’ requirements for responsible persons as set out by APRA in the proposed prudential standards.
APRA says it will only become involved in assessing an individual’s status when the regulator has particular concerns about that person.
“The proposals are designed to reflect community expectations about persons who fill positions of responsibility in these industries and will set minimum benchmarks for people in, or wishing to enter, these industries at director, senior management or advisory level,” APRA chairman Dr John Laker says.
Comments on the consultation paper and the prudential standards will close at the end of May.
AUTHOR
Jason Spits
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