The findings from an expert panel reviewing the capability of the Australian Prudential Regulation Authority (APRA) has been released, along with the Government’s response.
The Capability Review was established in February this year in response to the Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and a previous recommendation of the Productivity Commission.
In its review the Panel made 24 recommendations, with 19 directed to APRA and the remaining five directed to the Government.
The Panel said APRA was an ‘impressive and forceful’ regulator in matters of traditional financial risk.
Its Review identified important changes to ensure APRA is positioned to respond to “an environment of growing complexity and emerging risks for APRA’s regulated sectors.”
APRA has indicated it supports all 19 recommendations directed to it and that it had already implemented a number of them and was beginning initiatives to implement to remainder.
In its response the Government said it would take action on the five recommendations directed to it.
These recommendations were to ensure APRA had sufficient powers and flexibility to prevent inappropriate appointments to the regulated entities; that it change APRA’s regulatory framework, including its penalties; that it streamline APRA and ASIC’s accountability arrangements; and that it address staffing restrictions in the APS Bargaining Framework to ensure APRA can attract and retain high skilled staff.
The Panel was chaired by Graeme Samuel with members Diane Smith-Gander and Grant Spencer.
Their 146-page review can be accessed at the PS News link.
