1. 1 Code of Conduct Seminar Stephen Glenfield General Manager APRA 21 July 2015

2. History –APRA has had a good opportunity leading up to 1 July to engage with various parties –These have tended to be Boards and industry associations –Good to now be talking to practitioners …. 2

3. Since Budget night 2014 … APRA has been working with other agencies - PHIAC, Dept of Health & Treasury liaising with PHIAC interacting with industry learning and building knowledge developing operating model 3

4. 4 So what does APRA look like?

5. Supervision Supervision Support Policy Statistics Corporate support 5 So what does APRA look like?

6. PHIs will be supervised by our Specialised Institutions Division Offices in Brisbane, Sydney, Melbourne, Adelaide and Perth From 1 July – add Canberra to that list 6 So what does APRA look like?

7. APRA’s mission is ‘to establish and enforce prudential standards and practices designed to ensure that, under all reasonable circumstances, financial promises made by institutions we supervise are met within a stable, efficient and competitive fianicial system’. 7 APRA Mission

8. Strategic objectives Supervision Prudential Framework Materially strengthen failure and crisis preparedness People Organisational processes and infrastructure Transparent and accountable 8 APRA’s strategic objectives

9. Supervision identify and understand significant risks at both industry and institution level ensure timely and effective action can be taken to protect beneficiary interests. Strategies Risk Governance, Appetite and Culture Identifying desired outcomes from supervisory activities. place a heightened focus on issues which could give rise to systemic risk. Continually review our supervisory approach 9 APRA’s strategic objectives

10. So what happens in APRA supervision? The types of supervision activities: Quarterly meeting with management Onsite Risk Reviews Offsite analysis Prudential Consultation Thematic review Strategy discussion with management Annual meeting with Board

11. From 1 July 15 … APRA will … proceed carefully Utilise the strong background and knowledge of PHIAC staff, including supervision team continue to build its knowledge View PHIs ‘against the filter’ of our other industries (but recognise the differences) Bring our broad and diverse set of risk skills to bear 11

12. Questions 12