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Regulators commit to greater collaboration

ASIC and APRA have formally committed to greater collaboration as part of their ongoing response to the banking royal commission’s recommendations.  

The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have published an updated memorandum of understanding (MoU), in which they’ve committed to strengthen engagement, deepen cooperation and improve information sharing.

The MoU is designed to promote:

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  • stronger cooperation and collaboration between ASIC and APRA;
  • greater ease of sharing information between ASIC and APRA;
  • more proactive engagement and assistance on matters relevant to both ASIC and APRA; and
  • earlier detection of misconduct and prudential concerns.

The updated MoU follows on from the recommendations of the banking royal commission (recommendation 6.10), and is part of the regulators’ commitment to work closely with government on the legislative changes required to implement the recommendations.

Following the announcement, ASIC chair James Shipton said: “ASIC and APRA will continue to proactively engage and respond to issues efficiently to deliver positive outcomes for consumers and investors.

“The MoU facilitates more timely supervision, investigations and enforcement action and deeper cooperation on policy matters and internal capabilities.”

APRA chair Wayne Byres added that enhanced cooperation would reinforce the “twin peaks” model of regulation.

“ASIC and APRA share an interest in protecting the financial wellbeing of the Australian community and achieving a fair, sound and resilient financial system,” Mr Byres said.

“Strengthening engagement is a key priority of the ASIC commissioners and APRA members. We will continue to work closely together to enhance regulatory outcomes and achieve our respective mandates.”

The MoU will be reviewed on a regular basis.

The federal government has also revealed that it is preparing exposure draft legislation aimed at creating a statutory obligation on both ASIC and APRA to cooperate, share information, and notify each other of suspected breaches of laws administered by the other – in line with recommendation 6.9 of the banking royal commission’s final report. 

[Related: ASIC grilled over Westpac HEM appeal]

Regulators commit to greater collaboration
ASIC APRA
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