Treasury has called for submissions on proposals to strengthen the Australian Prudential Regulation Authority’s (APRA) crisis management powers when dealing with financial entities, including insurers.

An exposure draft of the Financial Sector Legislation Amendment includes changes to the Insurance Act 1973, Life Insurance Act 1995, the Banking Act 1959 and related acts.

Treasury says the amendments provide “clear powers that enable APRA to set requirements on resolution planning and ensure banks and insurers are better prepared for a crisis”.

The proposals also equip the regulator with an expanded set of crisis resolution powers to “act decisively to facilitate the orderly resolution of a distressed bank or insurer”.

The closing date for submissions is September 8. For more information on the exposure draft, click here.