Banking (prudential standard) determination No. 19 of 2007
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Banking Act 1959, subsection 11AF(3)
Under paragraphs 11AF(1)(a) and (b) of the Banking Act 1959 (the Act), APRA has the power to determine standards (prudential standards), in writing, in relation to prudential matters to be complied with by authorised deposit-taking institutions (ADIs). Under subsection 11AF(3) of the Act, APRA may, in writing, vary or revoke a prudential standard.
Banking (prudential standard) determination No. 2 of 2006 determined Prudential Standard APS 510 Governance (APS 510) to take effect on 1 October 2006. Banking (prudential standard) determinations No. 16 of 2006 and No. 2 of 2007 varied APS 510. Banking (prudential standard) determination No. 19 of 2007 varies APS 510.
This variation will take effect on 1 January 2008.
- Background
On 22 November 2007, APRA made Banking (prudential standard) determination No. 2 of 2007 which varied APS 510, effective on 1 January 2008. Subsequently, APRA identified that this variation to APS 510 contained a minor error which needed to be corrected.
2. Purpose of the instrument
The instrument varies APS 510 to ensure consistent use of the term ‘regulated institution’ in the standard.
3. Consultation
APRA did not consult with industry on the change to APS 510 because it is minor in nature and does not impact on the substantive requirements of the standard.