Australian Prudential Regulation Authority
The Australian Prudential Regulation Authority (APRA) is a statutory authority of the Australian Government and the prudential regulator of the Australian financial services industry. APRA was established on 1 July 1998 in response to the recommendations of the Wallis Inquiry. APRA's authority and scope is determined pursuant to the Australian Prudential Regulation Authority Act, 1998 (Cth).
|Statutory authority overview|
|Formed||1 July 1998|
|Dissolved||Australian Prudential Regulation Commission|
|Jurisdiction||Commonwealth of Australia|
|Headquarters||Sydney, New South Wales|
|Employees||586 (As of 2017-2018)|
|Statutory authority executives|
APRA oversees banks, credit unions, building societies, friendly societies, general insurance, health insurance, reinsurance, and life insurance companies, and most members of the superannuation industry. It ensures that these institutions keep their financial promises; that is, that they will remain financially sound and able to meet their obligations to depositors, fund members and policy holders. It was established on 1 July 1998. APRA is funded largely by the industries that it supervises. APRA currently supervises institutions holding A$5.4 trillion in assets for Australian depositors, policyholders and superannuation fund members.
The current chairman of APRA is Wayne Byres and the deputy chairman is Helen Rowell. Geoff Summerhayes is the third APRA member.
The Insurance and Superannuation Commission (ISC) was formally established on 23 November 1987, following the proclamation of the Insurance and Superannuation Commissioner Act 1987. The commission was based at the Australian Automobile Association Building, Canberra and also had offices in Melbourne and Sydney. The Insurance and Superannuation Commission was absorbed into the Australian Prudential Regulation Authority on 1 July 1998.
In June 1996, the Financial System Inquiry (known as the Wallis Inquiry) was established to examine the results of the deregulation of the Australian financial system, to examine the forces driving further change, particularly technological, and recommend changes to the regulatory system to ensure an "efficient, responsive, competitive and flexible financial system to underpin stronger economic performance, consistent with financial stability, prudence, integrity and fairness."
At the time, the regulators of the Australian financial services industry were based on the institutions and not the regulatory function. APRA's predecessor regulators were the Insurance and Superannuation Commission, the Reserve Bank of Australia and the Australian Financial Institutions Commission (AFIC). The Wallis Inquiry recommended a new structure.
The role of the Reserve Bank of Australia (RBA) was amended to deal with monetary policy and systemic stability with the Payments System Board considering payments systems regulation. The role of the Australian Prudential Regulation Commission (later to become APRA) was amended to deal with prudential regulation of authorised deposit-taking institutions (ADIs), life and general insurance, and superannuation including Industry superannuation. The Corporations and Financial Services Commission was renamed and its role expanded as the Australian Securities and Investments Commission (ASIC) to deal with market integrity, consumer protection and corporations.
APRA was established on 1 July 1998 under the Australian Prudential Regulation Authority Act 1998.
In 2018 Peter Harris, the chair of the Productivity Commission, was critical of the role of APRA in limiting price competition in banking. Representatives of APRA appeared before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry during 2018.
- 212 Northbourne Avenue
- "17/18 ANNUAL REPORT" (PDF). Australian Prudential Regulation Authority. 30 June 2018. Retrieved 12 June 2019.
- "Financial System Inquiry". Treasury.gov.au.
- Parliamentary Library Archived 11 September 2006 at the Wayback Machine
- ARPA (22 November 2017). "Opening statement to the House of Representatives Standing Committee on Economics". www.apra.gov.au. Retrieved 4 June 2018.
- Eyers, James (1 March 2018). "Productivity Commission and banks at loggerheads on competition". Financial Review. Australia. Retrieved 1 March 2018.
- Eyers, James (1 March 2018). "APRA boss Wayne Byres prepared to lift 10pc investor lending cap". Financial Review. Australia. Retrieved 1 March 2018.
- "APRA finalises new Restricted ADI licensing framework". APRA. Archived from the original on 9 May 2018. Retrieved 11 May 2018.
- "APRA consults on changes to authorising new entrants to banking industry". APRA. Archived from the original on 11 May 2018. Retrieved 11 May 2018.