pc
nid 94465
Aug 07, 2026
kgurnani@vixio.com
Australia
Federal Register of Legislation
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1650 charsAustralia's Department of the Treasury Issues Banking, Insurance and Life Insurance Prudential Standard Determination
On August 6, 2026, Australia's Department of the Treasury issued Banking, Insurance and Life Insurance (prudential standard) determination No. 1 of 2026 (F2026L01033). The determination establishes prudential standards for banking, insurance, and life insurance institutions operating under Australian financial services legislation.
The determination is administered under three key legislative frameworks: the Banking Act 1959, the Life Insurance Act 1995, and the Insurance Act 1973. It sets out comprehensive requirements governing the fitness and propriety of appointed auditors, responsibilities of Level 3 heads, internal audit functions, and interactions between institutions and their appointed auditors. The determination also establishes reporting obligations, including routine reports and special purpose engagements, alongside provisions for adjustments, exclusions, and previous exercises of discretion.
The determination came into force on August 6, 2026, and applies to all banking, insurance, and life insurance entities regulated under the specified legislation. The standards establish governance frameworks requiring institutions to maintain appropriate audit oversight, ensure auditor independence and competence, and meet defined reporting requirements. These prudential standards aim to strengthen institutional governance and risk management across Australia's banking and insurance sectors.
The full text of the determination, including the explanatory statement and detailed table of contents covering authority, application, interpretation, and general requirements, is available on the Federal Register of Legislation.
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1343 charsAustralia's Department of the Treasury Issues Banking, Insurance and Life Insurance Prudential Standard Determination No. 1 of 2026
On August 6, 2026, Australia's Department of the Treasury issued Banking, Insurance and Life Insurance (Prudential Standard) Determination No. 1 of 2026.
The determination remakes the Australia Prudential Regulatory Authority's (APRA) Standard 3PS 310 – Audit and Related Matters. This is largely an administrative remake rather than a substantive change in regulatory requirements. APRA remade the standard because the existing Level 3 standards were due to sunset on 1 October 2026. The updates primarily modernise references and add interpretation and previous-exercise-of-discretion provisions. APRA explicitly states that the changes do not impose new requirements on Level 3 conglomerate groups.
Among other things, the Level 3 Head must:
appoint an Appointed Auditor and document its responsibilities in a legally binding engagement;
ensure the auditor meets APRA fitness, propriety and independence requirements;
give the auditor access to relevant data, information, employees, the board and board audit committee;
ensure internal audit reviews the policies, processes and controls used to comply with APRA's prudential requirements;
provide relevant auditor reports and APRA responses to the board or board audit committee; and
bear the costs of the required audit work.
The determination comes into force on August 6, 2026.