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Keeping the status quo: the transition from PHIAC to APRA

After much anticipation, APRA has finally released a discussion paper, proposed prudential standards and reporting framework for their new role as the Private Health Insurance industry supervisor which is expected to take affect from 1 July 2015.

Although not unexpected the proposed standards are keeping with the status quo from PHIAC’s previous standards and framework.

This is a sigh of relief albeit momentary, as key stakeholders will now sit back and wait for APRA’s next move. Thankfully, the releases from 31 March 2015 do not indicate that any material changes will occur until at least 1 July 2016 giving APRA and the funds time to get well acquainted with each other. At Grant Thornton we have witnessed APRA’s swift hand of authority in their other regulated industries and won’t be surprised if they hit the ground running on 1 July 2015 with consulting on reforms.

Click here to visit the APRA website.