APRA has notified NobleOak Life Ltd it is in breach of its prudential and reporting standards, against capital requirements. The breaches relate to the measurement and reporting of NobleOak’s reinsurance exposures and the associated asset concentration risk.
The regulator will examine NobleOak’s compliance processes with its prudential and reporting obligations under its broader risk governance framework to establish the underlying causes of the breaches.
APRA said it would also take action “as needed” to hold those responsible for the breach to account. The NobleOak board has launched a review of its control processes to comply with APRA’s prudential standards.
The board has been formally advised it has breached Prudential Standard LPS 117 Capital Adequacy: Asset Concentration Risk Charge (LPS 117) and Reporting Standard LRS 117.0 Asset Concentration Risk Charge (LRS 117.0).
APRA said NobleOak’s non-compliance posed “no immediate risk” to members and policyholders nor was it connected to any of the latest financial market movements or developments.
NobleOak has advised APRA of its plan to remediate its breach of the LPS 117 requirements by July 1. APRA was satisfied the plan was credible and would monitor NobleOak’s execution of the plan closely over the coming months.