Powered by MOMENTUM MEDIA
subscribe to our newsletter

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:

  • 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.

Advertisement
Advertisement

“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.

PROMOTED CONTENT


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
mortgagebusiness

Latest News

The RBA has announced its August rate decision as ongoing lockdowns dampen speculation about imminent rate rises. ...

The CEO of a customer-owned lender has warned that mutual banks that do not have scale and financial strength will be ‘unsustainable’ i...

Two more major banks have signalled both permanent and partial closures in their branch networks. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.