News From The Regulator

Government Issues Financial Services Royal Commission Implementation Roadmap

Government Issues Financial Services Royal Commission Implementation Roadmap

On 19 August 2019, the Government released its plans on how it would respond to the recent Royal Commission into financial services. The Treasurer, the Hon Josh Frydenberg MP, described how the comprehensive reform package would become the largest since the Corporate Law Economic Reform Program (CLERP) in the 1990’s, with 24 streams of work…

APRA Chairman, Wayne Byres says Boards should not rely on financial targets to set executive remuneration

APRA Chairman, Wayne Byres says Boards should not rely on financial targets to set executive remuneration

“Boards have struggled to gain acceptance that new approaches are needed“. Speaking at the AFR Banking & Wealth Summit in Sydney on Wednesday 27 March 2019, APRA Chair, Wayne Byres said APRA had concluded many of the institutions it regulates had failed to adequately address executive pay. He declared that regulatory intervention would now be…

Productivity Commission Inquiry Report

Productivity Commission Inquiry Report

On 10 January 2019, the Productivity Commission Inquiry Report: ‘Superannuation; Assessing Efficiency & Competitiveness’ was publicly released after being handed to Government on 21 December 2018. Key points from the Commission’s Report include: Australia’s superannuation system needs to improve its adaptation to the modern workforce and the growing number of retirees. Structural flaws are resulting…

Strengthening Outcomes for Superannuation Members

Strengthening Outcomes for Superannuation Members

On 12 December 2018, APRA released a package of new and enhanced prudential requirements designed to ensure more robust measures are put in place by RSE Licensees for the oversight and delivery of quality outcomes for superannuation members. The ‘Outcomes Assessment’ requires trustees to annually benchmark and evaluate their performance in delivering ‘sound, value for…

APRA seeks improvements from Superannuation Licensees on Conflicts of Interest

APRA seeks improvements from Superannuation Licensees on Conflicts of Interest

APRA has written to RSE Licensee’s seeking enhanced oversight of outsourcing arrangements with related parties to manage conflicts of interest. APRA’s review of 14 licensees had been prompted by a concern that for some trustees commercial arrangements with related parties may be taking  precedence over outcomes delivered to members.   APRA concluded that: ensuring related party…

APRA Seeks Improvement in Executive Remuneration

APRA Seeks Improvement in Executive Remuneration

On 4 April 2018, APRA released the results of a review of remuneration practices at large financial institutions which found considerable room for improvement in the design and implementation of executive remuneration structures. APRA’s review comprised detailed analysis of executive remuneration practices and outcomes from a sample of 12 regulated institutions including ADI, insurance, and superannuation…

APRA Measures to Strengthen Superannuation Member Outcomes

APRA Measures to Strengthen Superannuation Member Outcomes

Superannuation Member Outcomes: On 13 December 2017, APRA released a consultation package aimed at assisting RSE Licensees to better position themselves for delivering on sound member outcomes.   The package includes proposed changes to the prudential framework to enhance: strategic and business planning; oversight of fund expenditure; and assessment of outcomes for members of RSE’s. The…

Assessing Quality Member Outcomes in Superannuation

Assessing Quality Member Outcomes in Superannuation

    On 31 August 2017, Helen Rowell, Deputy Chairman, APRA, issued a letter to all RSE licensees requesting additional focus by Trustees on delivering to members,  “quality outcomes on an ongoing basis“. ‘Quality outcomes for members’,  was described as:     high quality; and value for money superannuation products and services including; optimal retirement…

New APRA Consultation on Superannuation Governance Proposals

New APRA Consultation on Superannuation Governance Proposals

On 11 August 2017, the Australian Prudential Regulation Authority (APRA)  released a letter to superannuation trustees outlining proposed changes to the superannuation prudential framework to lift operational governance practices of APRA-regulated superannuation trustees (RSE licensees). Helen Rowell, APRA Deputy Chairman, said APRA had identified areas for improvement in some RSE licensees, to better reflect evolving…

APRA Speech: Legacy, Operational Risk & The Changing Consumer

APRA Speech: Legacy, Operational Risk & The Changing Consumer

  On 22 May 2017, Geoff Summerhayes, APRA Executive Board Member delivered a speech to the Actuaries Institute, in which he reflected on legacy, operational risk and the changing consumer describing the part the financial services industry, must play, particularly where they maintain what is termed a ‘social license’ to operate.   As well as stability…

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