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APRA review panel outlines key issues

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Treasury has released terms of reference for a capability review of the Australian Prudential Regulation Authority (APRA).

The three-person review panel will consider factors that support the regulator’s ability to deliver its statutory mandate. These include well-considered and clear strategies that take into account the future operating environment, decision-making that balances financial safety and financial stability, culture that supports supervisory and enforcement actions, and robust internal governance arrangements.

Appropriate resource allocation, responsiveness to emerging issues, engagement with financial sector regulators and statutory powers are also under consideration.

Issues raised by the Hayne royal commission and reviews of the superannuation and financial services industry will also be taken into account.

Former Australian Competition and Consumer Commission chairman Graeme Samuel heads the panel. The other members are former Westpac executive Diane Smith-Gander and former New Zealand Reserve Bank deputy governor Grant Spencer.

The review is among recommendations from the Hayne royal commission, which was highly critical of the way APRA and other regulators have handled issues facing the financial sector.

The panel will report to the Federal Government by June 30. The closing date for submissions is April 10.

For more information, click here.