Australian Prudential Regulation Authority (APRA) Chairman John Laker wants submissions on the regulator’s proposed changes to corporate governance standards, admitting the body does not have all the answers.

Speaking at an Australian Institute of Company Directors’ lunch in Perth last week, he said the regulator’s second round of reforms, released last November, had aroused “vigorous debate” about introducing a “box-ticking” approach to corporate governance.

He warned that while APRA has found industry submissions suggesting an approach based on principles rather than rules to be helpful, “having too many principles without specific rules can end up delivering marshmallow”.

“APRA will still need to be able to require boards to improve their practices, if circumstances dictate,” Dr Laker said.

He said while APRA’s mission is “financial safety”, the regulator is not in an ivory tower and is willing to get its hands dirty.