Treasury has released a Consultation Paper Strengthening APRA’s Crisis Management Powers seeking stakeholder views on:
- strengthening APRA’s crisis management powers in relation to authorised deposit-taking institutions (ADIs), superannuation entities and general and life insurers;
- proposed enhancements to the Financial Claims Scheme framework for both ADIs and general insurers;
- simplifying APRA’s regulatory powers across the various Acts it administers in the banking, insurance, and superannuation sectors, given that many firms operate across sectors;
- making a series of minor and technical amendments to enhance the effectiveness of legislation administered by APRA; and
- aligning Australia’s regulatory regime with international best practice following the GFC.
In relation to crisis management the paper reviews APRA’s existing powers in relation to groups, including control over non‐regulated entities in a group, clarifying APRA’s directions powers, suspending continuous disclosure requirements, widening the scope of application of the Business Transfer Act to related entities of general insurers and life companies, new direction powers for superannuation and providing APRA with more powers in relation to Australian branches of foreign banks.
