Australian Prudential Regulation Authority launches consultation on minor framework updates across 10 prudential and 15 reporting standards

The Australian Prudential Regulation Authority has opened consultation on a package of minor updates to its prudential and reporting framework for all APRA-regulated entities. The changes span 10 prudential standards, 15 reporting standards and two prudential practice guides, and are framed as technical revisions to improve clarity, accuracy, consistency and data quality without changing underlying policy settings or materially altering existing obligations. Key prudential changes include clarifying in APS 110 that only securitised exposures meeting capital relief requirements may be excluded from the leverage ratio exposure measure, updating APS 112, APS 113 and APG 112 to replace legacy Tier 1 references with Common Equity Tier 1 following the removal of Additional Tier 1 capital, and codifying that standardised ADIs may net trail commission assets under specified conditions. APRA also proposes to correct an omitted Basel III consequential amendment in APS 120 by applying a 10 per cent credit conversion factor to undrawn servicer cash advances, and to amend APS 210 so MLH ADIs can continue to recognise debt securities removed from the Reserve Bank of Australia repo-eligible list once they enter their closed-book period. Other targeted clarifications cover when borrower concessions amount to a restructured exposure under APG 220, a 20 business day grace period for adding collateral to certain reinsurance recoverables under GPS 114, HPS 114 and aligned reporting standards, and explicit floors preventing insurance risk charges from falling below zero under GPS 115 and HPS 115. On reporting, APRA proposes post-implementation adjustments to Superannuation Data Transformation standards, largely by refining primary keys to prevent duplicate submissions, along with specific corrections to selected superannuation, banking and insurance returns. It also plans to remake several sunsetting reporting standards with only minor formatting and drafting updates, while carrying forward previously discussed corrections to international banking statistics standards. Feedback is due by 21 August 2026. APRA expects to finalise the package in November 2026, with most changes taking effect on 1 January 2027 and remade sunsetting standards taking effect on their respective sunset dates.