The Australian Prudential Regulation Authority (APRA) has signalled that it is reviewing the implementation timetable for its Stage II IFRS reforms.
The rescheduling was signalled by APRA member, Steve Somogyi who used a speech to the insurance industry to say that regulator was “acutely aware” of the impact many new reforms were having on day to day operations.
“Many of these reforms, such as IFRS, have been in the pipeline for some time and have had their genesis from other, often global themes,” he said. “However, where we can, we are looking to ease the regulatory burden on insurers and it is with this in mind that we are currently considering our timeframe for the implementation of the Stage II reforms.”
Somogyi said that the majority of APRA’s proposals were planned to commence for insurers as of the first day of their next financial year following the release of the new prudential standards in January 2006.
“In recognition of the impact this may have on insurers with earlier balance dates (for example, March 31 and June 30 balancers) we are now considering allowing a longer transition period,” he said.
