International Law

APRA?s prudential requirements for First Home Saver Accounts

APRA has released the final package relating to the authorisation and prudential oversight of providers of First Home Saver Accounts (FHSAs).

The package comprises a prudential standard relating to superannuation licensees (known as RSE licensees), an authorisation form, a notification of intention to offer FHSAs form and a reporting standard. The standards will be effective from 1 October.

The First Home Saver Accounts Act 2008 (FHSA Act allows for public offer and extended public offer RSE licensees, life companies and authorised deposit-taking institutions (ADIs) to provide these accounts. Under the FHSA Act, RSE licensees will have to establish a separate trust for this purpose and the Superannuation Industry (Supervision) Act 1993 will not apply to this new trust. RSE licensees must demonstrate that risks arising from this new trust for FHSA business are properly considered and addressed. The reporting standard, which applies to providers across all three industries, collects specific prudentially relevant information on FHSAs.

Life companies or ADIs that wish to provide FHSAs need to notify APRA of their intention to do so prior to providing, or offering to provide, a FHSA. APRA prudential standards that already apply to the operations of life companies and ADIs are adequate for the provision of FHSAs.

Full post as published by Australian Regulatory Compliance Review on July 30, 2008 (boomark / email).