International Law

The Australian Prudential Regulation Authority (APRA) has released a consultation package on proposals to enhance the prudential framework for life insurance companies.

The package, which contains a discussion paper and four draft prudential standards, seeks comments on proposed changes to:

• draft Prudential Standard LPS 510 Governance (LPS 510);
• draft Prudential Standard LPS 520 Fit and Proper (LPS 520);
• draft Prudential Standard LPS 310 Audit and Actuarial Requirements (LPS 310); and
• draft Prudential Standard LPS 320 Actuarial and Related Matter(LPS 320).

The package also outlines some minor consequential amendments to the life insurance reporting standards.

The proposed changes to LPS 510 and LPS 520 are in response to the Financial Sector Legislation Amendment (Enhancing Supervision and Enforcement) Bill 2009 (NOHC Bill), introduced into Parliament on 19 March 2009. The Bill proposes to amend the Life Insurance Act 1995 (Life Act) to bring non-operating holding companies (NOHCs) of life companies, once authorised, under the prudential supervision of APRA, including the power to issue prudential standards in relation to NOHCs.