Document ID: chunk:federal_register_of_legislation:F2024L01075:body:0:p4
Version: federal_register_of_legislation:F2024L01075
Segment Type: other
Provision Reference: 
Character Range: 8643–11751

include a description of the modifications and commentary to explain why the modification was made. The ADI must notify APRA regarding the modifications in advance of making the modified disclosures. The ADI is not required to notify APRA again if the same modifications are made for future disclosures.
 3.          The BCBS Standard covers key prudential metrics and information relating to an ADI's risk profile and financial resilience, including risk management approach, regulatory capital, credit risk, counterparty credit risk, securitisation, market risk, operational risk, interest rate risk in the banking book (IRRBB), macroprudential indicators, leverage ratio and liquidity.
 4.          An ADI may make additional voluntary risk disclosure to present information relevant to their business model, to enable market participants to better understand and analyse the ADI's risk profile and financial resilience. Such additional voluntary disclosure must meet the key principles outlined in this Prudential Standard.
 5.          If APRA is not satisfied that the adequacy or quality of an ADI's prudential disclosures is consistent with the requirements set out in this Prudential Standard, APRA may require the ADI to rectify the disclosures or to disclose further information.
 6.          APRA may require an ADI to commission an independent audit of its prudential disclosures. This may include where APRA has reason to believe that the information being disclosed is incorrect or misleading.

Disclosure policy
 1.          An ADI must have a formal policy relating to its prudential disclosures approved by the Board. The key elements of the policy must be summarised in the ADI's year-end public disclosure. The disclosure policy must set out:
         1.           the ADI's approach to determining the content of its prudential disclosures; and
         2.           the ADI's internal controls and procedures for disclosures, including the review process and verification process.
 2.          An ADI must maintain effective internal controls and procedures for public disclosures, so as to produce appropriate and accurate disclosures. The information provided by an ADI in prudential disclosures must be subject, at a minimum, to the same level of internal controls and procedures as for the ADI's financial reporting.
 3.          In exceptional cases, disclosure of certain items of information may prejudice the position of an ADI or any other person, by making public information that is proprietary, confidential or personal in nature.[3] In such circumstances, an ADI may elect not to disclose this information and to instead disclose more general information about the subject matter of the requirement, together with commentary as to why the specific items of information have not been disclosed.

Verification of disclosures
 1.          An ADI must ensure that prudential disclosures are appropriately verified and must take steps necessary to ensure their reliability.
 2.          An ADI must ensure that its prudential disclosures are consistent with information that has