The Australian Prudential Regulation Authority has opened the final phase of its governance review by publishing a response to industry feedback and an updated draft Prudential Standard CPS 510 Governance for further consultation. The draft would strengthen governance and fitness and propriety requirements across banks, insurers and superannuation entities, with a focus on board governance, conflicts management and the suitability of directors and executives. The revised framework is intended to set clearer and more consistent minimum governance standards across APRA-regulated sectors while reducing overlap and unnecessary compliance. It would remove duplicative fit and proper reporting now that Financial Accountability Regime reporting is in place, eliminating the need to submit forms for 6000 individuals. It would also give boards more flexibility to delegate APRA board requirements contained in other prudential standards, align governance requirements with other codes and regimes where appropriate, and combine five existing prudential standards into a single standard. Consultation will run until the end of August. Feedback on the draft CPS 510, the proposed removal of routine fit and proper reporting, and related definitional changes in Prudential Standard CPS 001 Defined terms will inform the final standard and guidance, which APRA plans to release in late 2026, with the new requirements expected to take effect from early 2028.
Australian Prudential Regulation Authority2026-06-16
Australian Prudential Regulation Authority launches final governance consultation with draft standard consolidating five prudential rules and removing fit and proper forms for 6000 individuals
The Australian Prudential Regulation Authority has issued an updated draft governance standard and response to feedback as the final stage of its governance review for banks, insurers and superannuation entities. The package would tighten board, conflicts and fitness and propriety requirements while consolidating five prudential standards and removing duplicative fit and proper forms for 6000 individuals. APRA plans to finalize the framework in late 2026, with implementation expected from early 2028.