Document ID: chunk:federal_register_of_legislation:F2023L00682:body:0:p4
Version: federal_register_of_legislation:F2023L00682
Segment Type: other
Provision Reference: 
Character Range: 8538–11613

level document that describes and summarises the capital assessment and management processes of the regulated institution. It must outline at a minimum the aspects of the ICAAP listed in paragraph 11 (a) to (f) and this paragraph. The ICAAP summary statement must also include:
        (a)          a statement of the objectives of the ICAAP, the expected level of financial soundness associated with the capital targets and the time horizon over which the ICAAP applies;

        (b)          a description of the key assumptions and methodologies utilised by the regulated institution in its ICAAP, including stress testing and scenario analysis;

        (c)          triggers for reviewing the ICAAP in light of changes to business operations, regulatory, economic and financial market conditions, group structure (as applicable) and other factors affecting the regulated institution's risk profile and capital resources;

        (d)          a summary of the regulated institution's policy for reviewing its ICAAP, including who is responsible for the review, details of the frequency and scope of the review, and mechanisms for reporting on the review and its outcomes to the Board and senior management;

        (e)          a description of the basis of measurement of capital used in the ICAAP, and an explanation of the differences where this basis differs from that used for regulatory capital; and

        (f)           references to supporting documentation and analysis, as relevant.

13.         A regulated institution must ensure its ICAAP is subject to regular and robust review by appropriately qualified persons who are operationally independent of the conduct of capital management. The frequency and scope of the review must be appropriate to the regulated institution, having regard to its size, business mix, complexity of its operations and group structure (as applicable), and the nature and extent of any changes that have occurred or are likely to occur in its business profile or its risk appetite. A review must be conducted at least every three years. The review must be sufficient to reach a view on whether the ICAAP is adequate and effective.
14.         A regulated institution must, on an annual basis, provide a report on the implementation of its ICAAP to APRA (ICAAP report). A copy of the ICAAP report must be provided to APRA no later than three months from the end of the ICAAP reporting period to which it relates.
15.         The ICAAP report must include:
       (a)          detailed information on current and three-year projected capital levels relative to minimum regulatory capital requirements and target levels;
       (b)          detailed information on the actual outcomes of applying the ICAAP over the period, relative to the planned outcomes in the previous ICAAP report (including analysis of the regulated institution's actual capital position relative to minimum regulatory capital requirements and capital targets, and actual-versus-planned capital management actions);
       (c)          description of