The placing of all prudentially regulated industry segments under the Australian Prudential Regulation Authority (APRA) has resulted in a regulatory model that Executive Member John Trowbridge describes as “unequivocally the right one”.

Speaking to the Institute of Actuaries in Sydney last week, he said APRA needs to have “a clear philosophy, develop and maintain a sound conceptual framework, apply a long-term perspective and use good judgement”.

“There must be a balance between the theoretical and the practical,” said Mr Trowbridge, who is one of Australia’s leading actuarial professionals. “All of this is made easier with an integrated regulator.”

This enables consistency, gives scale and depth of experience, enables better and faster development of new standards, and provides better responses to difficult issues and a faster adaptation to changing market conditions.

Reminding the industry that innovation is the job of the industry and not the regulator, he said a good reading of industry developments by the regulator and an active response “assists in following market developments more quickly”.

“APRA will always look to adapt the prudential framework to developments in the industry, the market place and the economy.”