The Australian Competition and Consumer Commission and the Australian Prudential Regulation Authority have signed a Memorandum of Understanding setting out an agreed basis for policy coordination and information-sharing.
Both agencies have an interest in competition in the financial system.
"The ACCC has general responsibility for competition under the Trade Practices Act 1974 and APRA is primarily responsible for prudential regulation, under the Australian Prudential Regulation Authority Act 1998, balanced by competition, contestability and competitive neutrality," ACCC Chairman, Professor Allan Fels, said today.
"Both agencies have responsibility in relation to acquisitions of companies and assets in the financial system," APRA Chief Executive Officer, Mr Graeme Thompson, said.
The MOU will promote cooperative regulatory decision-making and allow the agencies to consult each other when considering a proposal for an acquisition of assets or companies involving regulated financial institutions.
When appropriate, the agencies will exchange information relevant to competition, efficiency and financial soundness in the financial system. They may also share information on the prudential soundness of financial institutions.
"However, both agencies recognise the conditions under which certain commercially sensitive data are supplied to each by market participants and the confidentiality and secrecy requirements of their respective operating legislation," Professor Fels said.
"We will consult with each other about relevant transactions in a timely manner," Mr Thompson said. "Regular, formal meetings of senior officers will be held to discuss coordination of policy and there will also be regular contact between our officers on routine matters".
Further information:
ACCC
Professor Allan Fels
Chairman
02 6243 1129 or pager 016 373 536
Ms Lin Enright
Director
Public Relations
02 6243 1108 or 0414 613 520
APRA
Mr Graeme Thompson
CEO
02 9210 3100
Ms Gloria Peterson
Public Affairs Manager 02 9210 3385
MR 236/99
2 December 1999
