The Australian Prudential Regulation Authority (APRA) doesn’t come out of the HIH Royal Commission report with much reputation left, but don’t expect big changes at the regulator. Treasurer Peter Costello has rejigged the regulator’s managerial oversight, and so far no one appears to have offered to resign.

CEO Graeme Thompson said last week that APRA “looks forward” to assisting the Government in its consideration of future policy for supervision of the Australian financial services sector.

Mr Thompson also noted the royal commissioner’s recommendations for further reforms to protect the interests of policyholders, but was quick to point out that APRA has already closed the regulatory loopholes and addressed the shortcomings that allowed HIH to continue until it capsized.

As part of the “twin peaks” regulatory model built by this Government, APRA was always an unlikely candidate for dismemberment, no matter how much the media “experts” called for blood. Although APRA has always insisted its job isn’t to prevent companies collapsing, its swift action in imposing tougher regulatory and licensing standards may have saved a head or two.

Mr Thompson said in a statement that he acknowledged the commissioner’s findings that APRA’s powers and responsibilities in the lead-up to the collapse “fell short of community expectations”. And he put the best spin possible on it by noting that Justice Owen has recognised APRA’s “candid and open approach” during the course of the hearings.

Having said its piece, the regulator is now adopting a low profile until the dust clears: it has announced it won’t be making further public comments for now.