Prudentially regulated institutions will have their breach reporting obligations streamlined under proposals by the Australian Prudential Regulation Authority (APRA).

The regulator says all authorised deposit-taking institutions, general insurers, life insurance companies and friendly societies can submit breaches online from next year. Previously, only superannuation companies have had this capability.

APRA Executive Member John Trowbridge says the new online reporting system will be a simpler and cheaper way for companies to notify APRA of possible law infringements.

Investment and Financial Services Association Deputy CEO John O'Shaughnessy says the proposals will streamline the breach reporting process.

The proposals follow the passing of new regulations earlier this year simplifying supervision in the financial services sector.

Comment on the proposals is open until October 31.