The Morrison Government has reappointed Australian Prudential Regulation Authority (APRA) chair, Wayne Byres, for another five years and committed $58.7 million of new funding to the organisation, ahead of what Treasurer Josh Frydenberg labelled a “time of significant reform in Australia’s financial system”.
The funding, which would be provided over four years from the current financial year, was earmarked to increase the number of frontline supervisors for the largest and most complex financial institutions, improve the regulator’s data collection capabilities, and enhance its abilities in responding to new and emerging risk areas. These areas would include cyber, fintech, and culture.
Following an Interim Report from the Banking Royal Commission that slammed financial services regulators’ responses to misconduct, Frydenberg also said that the additional funds would go towards a review of APRA’s enforcement strategy and its use of formal enforcement powers. This would include examining its use of such powers against the superannuation industry.
The Government also announced the appointment of a second deputy chair, John Lonsdale, who, alongside Byres, would be tasked with helping APRA develop a stronger focus on accountability and enforcement.