Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

Regulators tighten accountability framework

ASIC and APRA have provided an update on their actions to strengthen their internal accountability regime as part of their strategic responses to the banking royal commission’s recommendation.

The Australian Securities and Investments Commission (ASIC) has revised its internal governance framework and implemented a new accountability regime.

The changes are designed to strengthen ASIC’s governance and accountability measures as part of a reform program introduced in response to the recommendations of the banking royal commission.

Recommendation 6.12 of the royal commission’s final report called on both ASIC and the Australian Prudential Regulation Authority (APRA) to reform their internal accountability frameworks to reflect requirements prescribed in the Banking Executive Accountability Regime (BEAR).

“In a manner agreed with the external oversight body, each of APRA and ASIC should internally formulate and apply to its own management accountability principles of the kind established by the BEAR,” the recommendation reads.  

Advertisement
Advertisement

The revised framework outlines the manner in which ASIC’s commission collectively exercises its functions and powers to deliver on its obligations as a corporate watchdog.

Among the changes in ASIC’s updated framework are:   

  • an updated committee structure to strengthen oversight of executive actions and assist the commission in the performance of its responsibilities; and       
  • accountability statements for executive directors and commissioners that identify core responsibilities and individual accountabilities.

Following the release of ASIC’s updated framework, chair James Shipton commented: “The update reflects the importance ASIC places on transparency, regulatory integrity and effective oversight and management of its functions and responsibilities.”

Meanwhile, APRA has published its Governance and Senior Executive Accountabilities report, describing the regulator’s internal governance and accountability arrangements.

The report includes individual accountability statements for senior executive roles and an accountability map.

The accountability statements cover all four APRA members, as well as APRA’s six executive directors, APRA’s chief risk officer and chief internal auditor.

APRA committed to meeting the royal commission’s recommendation by 31 December 2019.

[Related: APRA launches probe into major bank]

Regulators tighten accountability framework
ASIC and APRA
mortgagebusiness

Latest News

Home loan applications continue to decline, according to the latest Equifax data.  ...

The non-major bank has announced “significant” home loan growth over the financial year 2022, up more than $1 billion. ...

New Zealand’s central bank has committed to another cash hike in the face of surging inflation, tacking on an extra 50 basis points. ...

VIEW ALL

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!

Do you think the new NSW property tax will help or hinder first home buyers?

Website Notifications

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