Australia’s much-admired “twin peaks” financial services regulatory system is about to undergo a change under draft legislation that will force the regulators to work together and share information.

The new legislation follows 76 recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, all of which the Government is adopting.

The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) are already regularly meeting under a revised Memorandum of Understanding the two organisations published in November.

Once adopted, the new legislation will oblige the pair to work closely together, share information to the maximum extent practicable and notify the other whenever a breach of the law for which the other regulator has enforcement responsibility is believed to have occurred.

“These new provisions will enable the regulators to support each other in discharging their regulatory functions effectively, and ensure that there are no unnecessary barriers to their sharing information,” Treasurer Josh Frydenberg said.