The Government introduced into the Parliament today a package of reforms to arrangements for reviewing administrative decisions of the Australian Prudential Regulation Authority (APRA).
The Financial Sector Legislation Amendment (Review of Prudential Decisions) Bill 2008 amends financial sector legislation to ensure that individuals and entities can seek appropriate review of APRA's decisions, while ensuring that APRA is still able to act decisively to address prudential risks. The measures include:
- the introduction of a court‑based process for disqualifying an individual from operating an entity regulated by APRA;
- enhanced flexibility and consistency through streamlined directions powers;
- removal of the requirement for ministerial consent for certain APRA decisions which do not involve broader policy issues; and
- an expansion of the availability of merits review for APRA decisions.
"The measures respond to recommendations of the HIH Royal Commission, the Taskforce on Reducing Regulatory Burdens on Business and the IMF's 2006 Financial Sector Assessment of Australia. The Rudd Government is committed to improving regulatory practices and so has introduced these reforms today," the Minister for Superannuation and Corporate Law, Senator Nick Sherry, said.
"These measures will improve the transparency and accountability of the prudential regulator for its decisions and will be welcomed by stakeholders," Minister Sherry said.