The Australian Prudential Regulation Authority (APRA) and the Motor Accidents Authority of New South Wales (MAA) have signed a Memorandum of Understanding setting out a framework for co-operation between the two agencies in areas of common interest where co-operation is essential for the effective and efficient performance of their respective financial regulation functions.

APRA was established in July last year, with operational autonomy, to prudentially supervise banks and other deposit-taking institutions, life and general insurance companies, superannuation entities, and develop policies in the performance of that role.

The MAA is responsible for the regulation of compulsory third party personal injury insurance (CTP) in New South Wales. In addition, the MAA is the Nominal Defendant, so it guarantees the payment of all claims in the event of a general insurers insolvency and has a very strong interest in monitoring the solvency of its licensed general insurers.

The Memorandum of Understanding recognises the importance of close co-ordination and co-operation between the two organisations.

In particular, it provides for exchange of relevant information and regular liaison on issues of joint interest, including emerging issues in the insurance industry, consultative processes with industry, public education strategies, the exchange of expertise, and the sharing of relevant statistical information and other corporate materials.

APRA has agreed similar arrangements with Treasury, the Reserve Bank, and the Australian Securities and Investments Commission in relation to co-ordination of their respective responsibilities.

The Memorandum of Understanding is attached.

Memorandum of Understanding.PDF

For further information on this matter, please contact

Ms Amanda Goodban (APRA)
(02) 9210 3380.