The Federal Government has decided to introduce a court-based review process for individuals disqualified by the Australian Prudential Regulation Authority (APRA).

The decision follows industry consultation and expressions of concern by many industry professionals that people banned by APRA can’t access an acceptably transparent appeal process.

After legislation is passed in the winter session of Parliament, appeals will be able to go straight to the Federal Court rather than the Administrative Appeals Tribunal.

The switch will give APRA a system similar to the disqualification framework used by the Australian Securities and Investments Commission.

APRA spokesman Stuart Snell told Sunrise Exchange News the regulator welcomes the Government’s decision because it “introduces an independent decision-maker”.

“It means instead of us disqualifying an individual and then having it appealed at the Administrative Appeals Tribunal, it will go directly to the Federal Court.”

The decision to change the APRA system arose as a result of feedback from the consultation paper “Streamlining prudential regulation: response to rethinking regulation”.

Treasurer Peter Costello says the Government will consult further with the industry on implementation of the new measure, and legislation making the change will be ready for introduction to Parliament in the next few months.