Australia: APRA finalizes its cross-industry amendments to margin requirements
The Australian Prudential Regulation Authority (APRA) has published its response to submissions on amendments to its margin requirements for non-centrally cleared derivatives.
The changes to Prudential Standard CPS 226 Margining and risk mitigation for non-centrally cleared derivatives (CPS 226) will apply to all authorised deposit-taking institutions, general insurers, life insurers and registrable superannuation entity licensees.
APRA indicates it is proceeding with its revisions to accommodate the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions’ (IOSCO) decision to delay the final implementation phase for margin requirements by one year – that is, to September 1, 2021.
APRA has also made other amendments in response to clarifications made by the BCBS and IOSCO.
APRA will add the UK’s Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) to the list of foreign bodies eligible for substituted compliance with APRA’s margin requirements in CPS 226, provided that the PRA and FCA’s margin requirements remain substantially unchanged following Brexit.
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