APRA tables timeframe on implementing Royal Commission reforms
APRA is expected to complete nine of the 10 recommendations from the Royal Commission by the end of 2020.
In a statement from the prudential regulator, APRA said wider themes have emerged from the Royal Commission’s final report, such as the need to broaden APRA’s supervisory focus, enhance inter-agency cooperation and collaboration, and improve performance measurement and accountability.
Other recommendations relevant to APRA, include the extension of the Banking Executive and Accountability Regime.
APRA said it would establish requirements for accountability under the BEAR for product management and customer remediation. Proposed requirements will be released in the second quarter of 2019, with a view to finalising a requirement by end 2019.
In terms of the Hayne’s recommendations to provide a supervisory role on pay standards in the industry, APRA expects to release revisions to its existing standards – CPS 510 = in mid-2019.
This will include the Royal Commission’s recommendations, recent lessons from APRA’s supervisory activity, the CBA Prudential Inquiry as associated self-assessments by other organisations, and relevant international guidance.
APRA’s intention is to have a final standard determined in 2020.
In terms of supervision around culture and governance, the prudential regulator said it is working with government to ensure it has sufficient resources to implement this recommendation.
“Developing the capacity to supervise these issues, across a wide range of entities, with considerably greater intensity will be a multi-year program,” APRA said.
APRA is also examining each of the 12 matters in relation to individual organisations that have been referred to it by the Royal Commission.
“This work is already underway and APRA will continue to liaise with ASIC and other relevant agencies to address promptly the matters identified.”
A detailed outline of the timetable can be accessed here.