The capability review of the Australian Prudential Regulation Authority (APRA) led by former Australian Competition and Consumer Commission (ACCC) chair, Graeme Samuel has delivered what was broadly expected by recommending measures which would toughen-up the regulator’s approach.
The Treasurer, Josh Frydenberg, commissioned the review in early February and selectively released its final report on Tuesday which revealed a view that APRA should have a greater ability to object to the appointment of directors and executives to the financial institutions it regulates if it believes they are inappropriate.
And at a time when APRA is locked in litigation with IOOF over matters arising from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the capability review questioned the manner in which the regulator handled the resolution of prudential matters – specifically citing “protracted behind the scenes negotiations of prudential issues”.
The Treasurer signalled the Government’s preparedness to act on the report’s recommendations – something which may lead to a strengthening of the Bank Executive Accountability Regime, which is already ear-marked for expansion to other areas of the financial services.
APRA’s formal response to the capability review said: "APRA will engage with the government on how the objectives identified by the capability review can best be achieved, noting the potential for moral hazard and administrative burden”.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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