Document ID: chunk:federal_register_of_legislation:F2024L01518:body:0:p5
Version: federal_register_of_legislation:F2024L01518
Segment Type: other
Provision Reference: 
Character Range: 12086–15195

its operations and group structure, 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.
 7.          An ADI must, on an annual basis, prepare a report on the implementation of its ICAAP (ICAAP report). A copy of the ICAAP report must be provided to APRA no later than three months from the end of the period covered by that report.
 8.          The ICAAP report must include:
         1.           detailed information on current and three-year projected capital levels relative to minimum regulatory capital requirements and target levels;
         2.           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 ADI's actual capital position relative to minimum regulatory capital requirements and capital targets and actual versus planned capital management actions);
         3.           a description of material changes to the ICAAP since the previous ICAAP report;
         4.           detail and outcomes of stress testing and scenario analysis used in undertaking the ICAAP;
         5.           a breakdown of capital usage over the planning horizon, as relevant, by material:
                 1.             business activity;
                 2.          group members;
                 3.        geographic spread of exposures; and
                 4.         risk types;
         6.            an assessment of anticipated changes in the ADI's risk profile or capital management processes over the planning horizon;
         7.           details of any review of the ICAAP since the previous ICAAP report, including any recommendations for change and how those recommendations have been, or are being, addressed; and
         8.           references to supporting documentation and analysis as relevant.
 9.          The ICAAP report submitted to APRA by the ADI must be accompanied by a declaration approved by the Board and signed by the CEO stating whether:
         1.           capital management has been undertaken by the ADI in accordance with the ICAAP over the period and, if not, a description of, and explanation for, deviations;
         2.           the ADI has assessed the capital targets contained in its ICAAP to be adequate given the size, business mix and complexity of its operations and, at Level 2, given the location of operations of group members and the complexity of the group structure; and
         3.           the information included in the ICAAP report is accurate in all material respects.

Minimum risk-based capital adequacy requirements
 1.          APRA will determine prudential capital requirements (PCRs) for an ADI. The PCRs, expressed as a percentage of total risk-weighted assets (RWA), will be set by reference to Common Equity Tier 1 Capital, Tier 1 Capital and Total Capital. PCRs may be determined