Financial Sector Reform (Amendments and Transitional Provisions) Regulations 1999

VARIATION OF APRA TRANSITIONAL PRUDENTIAL STANDARDS

I, Graeme John Thompson, Chief Executive Officer (“CEO”) and a delegate of the Australian Prudential Regulation Authority (“APRA”), under paragraph 16(1)(a) of the Financial Sector Reform (Amendments and Transitional Provisions) Regulations 1999 (the “Regulations”) and subsection 33(3) of the Acts Interpretation Act 1901:

1. REVOKE the Variation of APRA Transitional Prudential Standards made by me dated 8 September 2000; and
2. VARY the APRA transitional prudential standards in the manner set out in the Schedule.

This instrument comes into force on 1 July 2002.

Dated 27 May 2002

[signed]

G J Thompson

CEO

[Note 1: The APRA transitional prudential standards (preserved by regulation 12 of the Regulations) are listed in Schedule 1 to the Regulations.

Note 2: In this instrument, “Financial Institutions Code” has the meaning given by item 1 of Schedule 8 to the Act.]

SCHEDULE

1. Book 3 – all omitted, except the parts listed below:

(a)          Prudential Note 3.1:

• Under “Specific Risks” part (v) Data Risk, the first paragraph is retained;
• Under “Specific Risks” part (vi) Operations Risk, the first, sixth, seventh and eighth paragraphs are retained;

(b)          Prudential Standard 3.1.5, Data Risk, paragraphs 3.1.5.a and 3.1.5.c are retained; and

(c)          Prudential Standard 3.1.6, Operations Risks, paragraph 3.1.6.a is retained.

2.             Book 4 – all omitted, except the parts listed below:

(a)          Prudential Note 4.1:

• Under “Specific Risks” part (v) Data Risk, the first paragraph is retained;
• Under “Specific Risks” part (vi) Operations Risk, the first, sixth, seventh and eighth paragraphs are retained;

(b)          Prudential Standard 4.1.5, Data Risk, paragraphs 4.1.5.a and 4.1.5.c are retained; and

(c)          Prudential Standard 4.1.6, Operations Risks, paragraph 4.1.6.a is retained.

3.             Book 5 – all omitted, except the parts listed below:

(a)          Prudential Note 5.1:

• Under “Specific Risks” part 5.1.4, Transaction and Technology Risk, the first and second paragraphs are retained;
• Under “Specific Risks” part 5.1.5, Operations Risk, the first, and sixth-twelfth paragraphs (inclusive) are retained;

(b)          Prudential Standard 5.1.4, Transaction and Technology Risk, paragraphs 5.1.4.a, 5.1.4.b, 5.1.4.d and 5.1.4.e are retained;

(c)          Prudential Standard 5.1.5, Operations Risks, paragraphs 5.1.5.a, 5.1.5.b and 5.1.5.c are retained;

(d)          Prudential Note 5.4C, Directors, is retained; and

(e)          Prudential Standard 5.4.3, Composition of the Boards of Directors of SSPs, is retained.

4.             Subsections 245(1) – (3) of a Financial Institutions Code, preserved under item 5 of Schedule 1 of the Regulations are omitted.

5.             Any “urgent prudential standards”, preserved under item 6 of Schedule 1 of the Regulations are omitted.

6.             Any “modifications of transitional prudential standards”, preserved under item 7 of Schedule 1 of the Regulations, are omitted.