The review found problems with a conformist culture, little understanding of cyber risk and failure to support superannuation members.
In a statement, Treasurer Josh Frydenberg suggested that the Australian Prudential Regulation Authority (APRA) remains an impressive and forceful regulator in matters of traditional financial risk.
However, the review has identified important changes to ensure that APRA is well positioned to respond to a growing complex and emerging risk for APRA’s regulated sectors.
In line with the recommendations and APRA’s own plans for change, APRA is committed to:
- Maintaining and building financial system resilience: APRA will retain its unwavering focus on financial safety and stability, while expanding its capability in other important areas.
- Leadership and culture: APRA is continuing to strengthen its own leadership capabilities and culture and will adjust its organisational structure to support flexible and effective modes of operating.
- Strengthening capability: APRA is strengthening both its resourcing and supervisory approach to make issues of governance, culture, remuneration and accountability a much more prominent and central part of its supervisory framework.
- A strong outcomes focus in superannuation: Building on the recent legislative reforms, APRA will continue to embed its strengthened focus on member outcomes as the centrepiece of its supervisory approach in superannuation.
- Enhanced communications: APRA will better utilise strategic communications to deliver stronger prudential outcomes and enhance its own accountability.
Cameron Micallef is a journalist at Nest Egg, writing primarily about personal wealth and economic markets.
Prior to this, Cameron worked for Australian Associated Press. He graduated from the University of Wollongong with a double degree in communications and commerce.