Well now we know....APRA born on 1 July 1998 and funded by the industries it supervises.......
Australian Prudential Regulation Authority
http://www.apra.gov.au/Pages/default.aspx
The Australian Prudential Regulation Authority (APRA) oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurance, friendly societies and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998.....
read more http://www.apra.gov.au/Pages/default.aspx
Supervision
APRA supervises Australia’s banks, building societies and credit unions (authorised deposit-taking institutions), life and general insurance and reinsurance companies, friendly societies and superannuation funds (excluding self-managed funds). APRA promotes financial stability by requiring these institutions to manage risk prudently so as to minimise the likelihood of financial losses to depositors, policy holders and superannuation fund members.
Through its supervision, APRA’s aim is to identify potential weaknesses in its regulated institutions as early as possible. APRA follows a risk-based approach under which institutions facing greater risks receive closer supervision.
After an institution is licensed by APRA, it is subject to ongoing supervision to ensure it is managing risks prudently and meeting prudential requirements, and to identify those institutions that are unable or unwilling to do so.
The two main supervisory tools APRA uses are on-site and off-site analysis. These reviews are undertaken by prudential supervisors with in-depth knowledge of institutions in a particular sector, and supported by specialist risk experts.
For a more detailed overview of APRA’s supervision of institutions download the APRA Supervision Blueprint in PDF or view the publication in HTML.
PAIRS and SOARS
In October 2002, APRA introduced new risk assessment and supervisory response tools known as the Probability and Impact Rating System (PAIRS) and the Supervisory Oversight and Response System (SOARS). These supervisory tools are the centrepiece of APRA’s risk-based approach to supervision and assist APRA in:
- making better risk judgments;
- quickly and consistently taking supervisory action where necessary;
- strengthening the ability of supervisors to take effective action; and
- improving oversight and reporting on problem entities.
An explanation of PAIRS and SOARS are available below;
PAIRS publication in PDF | PAIRS publication in HTML
SOARS publication in PDF | SOARS publication in HTML
Prudential framework
The following pages outline the prudential framework for each of APRA's regulated industries. The main prudential framework page contains links to legislation, prudential standards, guidance notes (as applicable), prudential practice guides and other guidance material, proposals relating to each industry and further letters, notes and advices relating to the industry.
- Authorised deposit-taking institutions
- General Insurance
- Superannuation
- Life Insurance and Friendly Societies