APRA helps industry prepare for pandemic
In an effort to help financial institutions plan for a potential pandemic, the Australian Prudential Regulation Authority (APRA) has released an information paper and prudential practice guide to assist APRA-regulated companies.
According to APRA, Australian financial institutions need to develop a more consistent and predictable approach to pandemic preparedness and be more aware of their telecommunications capacity.
To ensure they receive adequate priority in a pandemic scenario, financial institutions should recognise the critical role of maintaining essential financial services in promoting public confidence.
Pandemic planning assists financial institutions consider the possible impact to their business of a human outbreak of influenza or other disease.
APRA’s interest is in ensuring that regulated institutions have conducted prudent and reasonable planning to meet core obligations to depositors, policyholders and other beneficiaries.
Covering areas such as pandemic project governance, business continuity management, the typical content of pandemic plans, definition of critical functions, the range of external factors that need to be considered and potential financial impacts, APRA’s advice has been released following consultation with industry and research into pandemic planning that is taking place around the world.
APRA has been working on pandemic planning in recent months with larger institutions, industry associations, other financial regulators and the Government.
The focus has been on highlighting good practice, identifying industry-level issues and assessing potential financial impacts on regulated institutions.
According to APRA, most financial institutions are “significantly advanced” in their pandemic planning efforts with some establishing internal pandemic committees and developing a pandemic plan that links directly to crisis management, communications, liquidity and other plans.
Recommended for you
ASIC has taken action against a Queensland adviser who was sentenced last May for misappropriating $1.8 million from his clients.
WT Financial managing director, Keith Cullen, says the firm is looking inward when it comes to M&A, with a focus on helping practices in its network become “bigger, better and stronger” via scaling up.
The Senate has opted to extend the date of the inquiry into Dixon Advisory and wealth management companies, having originally been scheduled to complete next month.
A former Insignia Financial C-suite exec has taken on a leadership role at MUFG Retirement Solutions as it announces chief executive Dee McGrath will depart after six years.
