Components of output group 1.1 are:

Output 1.1.1 — Policy development;

Output 1.1.3 — Prudential advice.

Policy development comprises the issuance of prudential standards and guidelines to assist regulated industries manage risk, industry consultation in development of new prudential policies, cooperation with national and international agencies in the harmonisation of prudential standards and informing the public to enhance understanding of the role of APRA.

Issuance of prudential standards, guidelines and like instruments which effectively address risk management exposures of regulated industries.

Timely issuance of prudential standards and guidelines which address risk management exposures of regulated entities.

Comprehensive consultation with industry bodies, regulated institutions and professional associations on the development and implementation of prudential policy.

Compliance with consultation requirements of the Office of Best Practice Regulation.

Effective communication and cooperation with relevant national and international agencies including participation in the international development and harmonisation of prudential regulation policy and practice.

Timely advice to other members of the Council of Financial Regulators and the Government on significant issues of inter‑agency or financial system concern.

Effective communication of Australia's perspective in international fora involved in developing global prudential standards.

Promotion of public understanding of the role of APRA and informed debate on issues relating to prudential supervision through the publication of discussion papers, statistics and other relevant information.

Maintenance of regular publication of statistical information.

Timely release and provision for adequate consultation where appropriate for documents on prudential supervision issues.

Surveillance programs aim to minimise financial loss by depositors, policyholders and superannuation fund members which may result from the failure of regulated institutions to adequately manage risk; facilitate early identification of emerging prudential risks and supervision of necessary remedial actions through inspections and off-site surveillance of regulated entities; and exercise enforcement powers as appropriate to protect the interests of depositors, policyholders, superannuation funds members and the public interest generally.

Minimise the risk of financial loss by depositors or policyholders resulting from the failure of regulated institutions to observe laws, regulations or prudential standards administered by APRA.

Surveillance of regulated entities to ensure they maintain a culture of prudent behaviour and commitment to effective risk management practices.

The identification of emerging prudential risks within regulated institutions through programmes of inspection and off-site surveillance and the supervision of remedial actions to effectively manage such risks.

Active surveillance to enable the early identification of prudential risks and timely remedial action that minimises the risk of financial loss by depositors, policyholders and superannuation fund members.

The exercise by APRA of formal enforcement powers where necessary to protect the interests of depositors, policy holders, superannuation fund members or the public interest generally (including powers to issue directions, disqualify persons from positions of management or trust, transferring engagements, withdrawing licences, or initiating prosecutions).

Timely exercise of APRA's powers in the event that action is required.

Prudential advice to government includes advice on prudential regulation policy development; advice on amendments to legislation and regulations administered by APRA; liaison with Treasury and appropriate Ministers at regular intervals; and briefing of the Government on matters emerging in international forums which may impact on prudential policy.

Regular liaison meetings with the Treasury and with relevant Ministers and Parliamentary Committees.

Continuation of regular liaison meetings with the Treasury.

Meetings with relevant ministers and attendance at Parliamentary Committees as required.

Recommendations to government on prudential regulation policy development involving legislative implementation (including amendments to all Acts of Parliament administered by APRA and regulations there under).

Advice to government on the operational effectiveness of legislation, when appropriate.

Timely responses to Government to requests for comments on policy and legislation proposals.

Timely briefings to government on major items of policy interest emerging from APRA participation in international fora.

Consultation with government, as appropriate, before and timely briefings following APRA's participation in international fora on policy positions being presented on behalf of Australia.

Maintenance of a memorandum of understanding with the Treasury.

Maintenance of understandings set out in the memorandum.