An updated agreement between two major regulators is expected to bring greater clarity and increased information-sharing to Australia’s financial services regulatory system.

A new memorandum of understanding signed by the Australian Prudential Regulation Authority (APRA) and the Australian Competition and Consumer Commission (ACCC) commits both agencies to a broader model of engagement, with a greater emphasis on proactive information sharing and collaboration.

It has been written in simpler, less prescriptive language to increase transparency.

The updated document is expected to strengthen the relationship between the two agencies, who say they have worked closely together during the COVID-19 pandemic on issues including resolution planning and authorisations on anti-competitive arrangements in the financial system.

“Updating this memorandum of understanding reflects the importance of our relationship with the ACCC, and acknowledges the importance of competition in maintaining a healthy and efficient financial system,” APRA Chair Wayne Byres said.

ACCC Chair Rod Sims says there is a “strong appreciation” for the complementary roles each agency plays in ensuring a competitive and stable financial services industry.

“This will allow the ACCC and APRA to continue to share intelligence and insights and work closely together to achieve good outcomes for Australians, including ensuring the impacts of COVID-19 on the financial sector are managed in a pragmatic and sensible way,” he said./

The updated MoU is available on the APRA website here.