The changes to Prudential Standard CPS 226 Margining and risk mitigation for non-centrally cleared derivatives (CPS 226) are set to apply to all authorised deposit-taking institutions, general and life insurers and registrable superannuation entity licensees.
APRA’s proposed revisions accommodate the decision of the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO) to delay the final implementation phase for margin requirements by one year to 1 September 2021.
The regulator is also proposing other amendments in response to clarifications made by the BCBS and IOSCO.
It plans to add the UK’s Prudential Regulation Authority and Financial Conduct Authority to the list of foreign bodies eligible for substituted compliance with its margin requirements following Brexit.
Submissions will close on 28 August.
