The Supervision of conglomerate groups Proposed Level 3 reporting requirements discussion paper outlines proposed reporting rules that conglomerates or “Level 3” groups will need to comply with by 1 January 2015.
“In relation to capital adequacy, APRA proposed that a Level 3 group must have sufficient capital such that the ability of its APRA-regulation institutions to meet their obligations to APRA beneficiaries is not adversely impacted by risks emanating from non-APRA-regulated institutions in the group,” APRA said in the paper.
“These [reporting] requirements are imposed on the Level 3 Head, which will be responsible for the submission of the completed reporting forms.”
Under the new arrangements, APRA is proposing that general insurance Level 2 groups and registrable superannuation entity (RSE) licensees that are members of a Level 3 group submit reporting forms on a quarterly basis.
“APRA does not consider this to be a significant new requirement as general insurance Level 2 groups and RSE licensees are already required to actively monitor their respective requirements,” it said.
Furthermore, APRA proposes that the data provided by the Level 3 Head be subject to audit requirements set out in Prudential Standard 3PS 310 Audit and Related matters (3PS 310).
The final Level 3 standards, forms and instructions will be released during the first quarter of 2014.`
