Regulatory AlertsPrudential Standard GPS 110 Capital Adequacy
The Australian Prudential Regulation Authority issued Prudential Standard GPS 110 to require general insurers and Level 2 insurance groups to maintain adequate capital commensurate with their risk profiles. The standard mandates the implementation of an Internal Capital Adequacy Assessment Process and establishes a risk-based Prudential Capital Requirement calculated through specific risk charges. Regulated entities must also adhere to strict capital quality definitions, obtain supervisory consent for capital reductions, and publish annual disclosures regarding their capital adequacy position.
Share