The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have committed to strengthen engagement, deepen cooperation and improve information sharing.
The agencies today published an updated Memorandum of Understanding (MoU).
The updated MoU follows on from the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry1. APRA and ASIC are also working closely with Government on the legislative changes required to implement these recommendations.
ASIC Chair James Shipton said the updated MoU builds on the open and collaborative relationship across all levels of the agencies.
“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,” Mr Shipton said.
APRA Chair Wayne Byres said enhanced cooperation reinforced the twin peaks model of regulation that has operated in Australia for more than 20 years.
“ASIC and APRA share an interest in protecting the financial wellbeing of the Australian community and achieving a fair, sound and resilient financial system.
“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,” Mr Byres said.
This MoU, which will be reviewed on a regular basis, is only one aspect of how ASIC and APRA are establishing closer cooperation. Led by ASIC Commissioners and APRA Members, the agencies are regularly meeting under a revised engagement structure and working together on areas of common interest, including data, thematic reviews, governance and accountability. Both agencies are committed to detecting prudential and conduct issues early and working to resolve them efficiently and effectively.
The updated MoU is available below:
1. Recommendation 6.9 of the Royal Commission recommended that the law should be amended to oblige ASIC and APRA to cooperate, share information to the maximum extent practicable and notify the other whenever it forms the belief that a breach for which the other agency has enforcement responsibility may have occurred.
Recommendation 6.10 of the Royal Commission stated that ASIC and APRA should prepare and maintain a joint memorandum setting out how they intend to comply with their statutory obligation to cooperate.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $7.9 trillion in assets for Australian depositors, policyholders and superannuation fund members.
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