On 12 September, the Minister for Financial Services and Superannuation, Bill Shorten, released the paper “Strengthening APRA’s Crisis Management Powers” for public consultation.
The paper forms part of the ongoing review process of Australia’s financial regulation and seeks submissions on a range of options for enhancing and streamlining financial services legislation. The proposed options are intended to align Australia’s regulatory framework with international standards for crisis management arrangements.
The release states that the proposals aim to:
- strengthen the Australian Prudential Regulation Authority’s (“APRA”) crisis management powers in relation to authorised deposit-taking institutions, superannuation entities, and general and life insurers, including:
- enhancing APRA’s powers in relation to foreign entities
- the ability to appoint statutory or judicial managers to a failing institution
- clarifying and expanding APRA’s powers in relation to winding up and external administration of regulated entities
- enhancements to the Financial Claims Scheme and
- providing APRA with directions power in superannuation to take pre-emptive action to address prudential concerns including the removal of an individual trustee, director or officer
- simplify and streamline APRA’s regulatory powers across the various Acts it administers and
- ensure consistency through technical amendments of legislation administered by APRA.
The closing date for submissions is 14 December 2012.