Parliament curbs APRA’s fire power
The Australian Prudential Regulation Authority (APRA) will introduce a court-based disqualification system following legislation passed by Federal Parliament last week.
The Financial Sector Legislation Amendment (Review of Prudential Decisions) Act 2008 takes away the regulator’s power to disqualify company executives without judicial approval. Since the collapse of HIH in 2001 APRA has disqualified a significant number of industry executives under a “fit and proper person” measurement, attracting criticism for a perceived lack of legal transparency.
Superannuation and Corporate Law Minister Nick Sherry has welcomed the new law, which was first introduced under the Howard Government.
“When APRA makes important decisions about the Australian financial system it should do so in a way that is transparent, efficient and consistent,” Senator Sherry said. “This is critical for confidence in the system.”
The Financial Sector Legislation Amendment (Review of Prudential Decisions) Act 2008 takes away the regulator’s power to disqualify company executives without judicial approval. Since the collapse of HIH in 2001 APRA has disqualified a significant number of industry executives under a “fit and proper person” measurement, attracting criticism for a perceived lack of legal transparency.
Superannuation and Corporate Law Minister Nick Sherry has welcomed the new law, which was first introduced under the Howard Government.
“When APRA makes important decisions about the Australian financial system it should do so in a way that is transparent, efficient and consistent,” Senator Sherry said. “This is critical for confidence in the system.”