Insurance (prudential standard) determination No. 10 of 2006
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Insurance Act 1973 (the Act), subsection 32(1)
Acts Interpretation Act 1901, subsection 33(3)
Under subsection 32(1) of the Act, APRA has the power to determine standards (prudential standards), in writing, in relation to prudential matters to be complied with by all general insurers (insurers) authorised under the Act. Subsection 33(3) of the Acts Interpretation Act 1901 gives APRA power to vary prudential standards so determined.
Insurance (prudential standard) determination No. 10 of 2006 (the instrument) varies Insurance (prudential standard) determination No. 9 of 2006 - Prudential Standard GPS 231 Outsourcing (GPS 231).
- Background
After discussion with industry, APRA has become aware that the intended effective date of GPS 231 of 1 January 2007 poses potential implementation problems for some insurers.
2. Purpose of the instrument
The instrument varies the effective date of GPS 231 from 1 January 2007 to 1 April 2007. Delaying the effective date of GPS 231 will allow insurers sufficient time to ensure that they are able to comply with the standard from its commencement.
3. Consultation
APRA consulted extensively with industry prior to determining GPS 231.
APRA has consulted with industry and some individual insurers in relation to the change to the effective date. Industry is supportive of this change.