The Australian Prudential Regulation Authority’s (APRA) primary focus will remain the overall safety and stability of the financial system, despite the extra responsibilities the Hayne royal commission has recommended, Chairman Wayne Byres says.

The financial system remains fundamentally sound, even though some areas require significant change and improvement, he says.

APRA is addressing the royal commission’s recommendations relating to group life insurance as part of its review of the superannuation prudential framework.

One recommendation calls for APRA to require funds to prove – through independent analysis – that arrangements with life insurers are in members’ best interests.

Another calls on the regulator to build a supervisory program to mitigate misconduct risk, assess potential motivators of misconduct and encourage companies to tackle it.

None of the potential breaches of law or prudential standards that have been referred to APRA carry civil or criminal charges.