APRA releases response to consultation on remaking Level 3 conglomerate standards

APRA has released its response to consultation on remaking three Level 3 conglomerate prudential standards, namely 3PS 221 Aggregate Risk Exposures, 3PS 222 Intra-group Transactions and Exposures and 3PS 310 Audit and Related Matters, ahead of their scheduled sunset on 1 October 2026. APRA consulted on the proposed remake between March and May 2026 and received one submission. Following that consultation, APRA confirmed it will remake the three standards with administrative updates only, including updating references and inserting an interpretation paragraph and a previous exercise of discretion paragraph.

APRA stated that these updates do not introduce any new requirements for Level 3 conglomerate groups, and that the content of the corresponding prudential practice guides, 3PG 221 Aggregate Risk Exposures and 3PG 222 Intragroup Transactions and Exposures, remains unchanged. The single submission received noted that, while the remake is largely administrative, it provided an opportunity to reinforce governance, accountability and supervisory clarity across complex organisational groups. APRA acknowledged this feedback but concluded that the existing standards remain fit for purpose and that no further changes are proposed.

The remade standards will take effect before the 1 October 2026 sunset date, replacing the current versions without altering their substantive requirements. The development is relevant to groups determined by APRA to be Level 3 conglomerate groups, which should ensure their internal documentation and policy references reflect the remade standards once finalised.