1

Code of Conduct Seminar

Stephen GlenfieldGeneral ManagerAPRA21 July 2015

History– APRA has had a good opportunity leading up to 1

July to engage with various parties– These have tended to be Boards and industry

associations– Good to now be talking to practitioners ….

2

Since Budget night 2014 …

APRA has been• working with other agencies - PHIAC, Dept of Health & Treasury• liaising with PHIAC• interacting with industry• learning and building knowledge• developing operating model

3

4

So what does APRA look like?

• Supervision• Supervision Support• Policy• Statistics• Corporate support

5

So what does APRA look like?

• PHIs will be supervised by our Specialised Institutions Division

• Offices in Brisbane, Sydney, Melbourne, Adelaide and Perth

• From 1 July – add Canberra to that list

6

So what does APRA look like?

APRA’s mission is ‘to establish and enforce prudential standards and practices designed to ensure that, under all reasonable circumstances, financial promises made by institutions we supervise are met within a stable, efficient and competitive fianicial system’.

7

APRA Mission

Strategic objectives•Supervision•Prudential Framework•Materially strengthen failure and crisis preparedness •People•Organisational processes and infrastructure•Transparent and accountable

8

APRA’s strategic objectives

Supervision•identify and understand significant risks at both industry and institution level•ensure timely and effective action can be taken to protect beneficiary interests. •Strategies•Risk Governance, Appetite and Culture•Identifying desired outcomes from supervisory activities.•place a heightened focus on issues which could give rise to systemic risk.•Continually review our supervisory approach

9

APRA’s strategic objectives

So what happens in APRA supervision?

The types of supervision activities:•Quarterly meeting with management•Onsite Risk Reviews•Offsite analysis•Prudential Consultation•Thematic review•Strategy discussion with management•Annual meeting with Board

From 1 July 15 … APRA will …

• proceed carefully• Utilise the strong background and

knowledge of PHIAC staff, including supervision team

• continue to build its knowledge• View PHIs ‘against the filter’ of our

other industries (but recognise the differences)

• Bring our broad and diverse set of risk skills to bear

11

Questions

12