Financial services regulation
FINANCIAL SERVICES ROYAL COMMISSION
–– Australian Prudential Regulation Authority ( APRA ) released its report on its own enforcement strategy review on 29 March 2019. The enforcement strategy review examined APRA’s approach to prospective use of its enforcement powers to achieve its prudential objective of ensuring financial promises made by its supervised institutions are met within a stable, efficient, and competitive financial system; –– significant funding increases for the Australian Securities and Investments Commission ( ASIC ) (over AUD 400 million), APRA (over AUD 150 million), the Commonwealth Department of Public Prosecutions (AUD 51.5 million) and the Federal Court of Australia (AUD 35 million); –– a new supervisory approach that involves embedding ASIC officers in major financial institutions and a new office of Enforcement; and –– the Australian Government has announced the establishment of a Committee of Regulatory Enforcement Strategy, to be chaired by the Attorney- General’s Department. An implementation roadmap has also been announced which will see all the Financial Services Royal Commission recommendations requiring legislation introduced by the end of 2020.
On 1 February 2019, the Financial Services Royal Commission Final Report ( Final Report ) was issued by Commissioner Hayne to the Australian Government. The Final Report, and legislative developments over the past 12 months, point clearly to a more robust enforcement environment for corporates in the financial services industry going forward. TheAustralianGovernmentandregulators have already started to respond to issues identified in the Financial Services Royal Commission through a range of initiatives that have been announced and further reform is anticipated given the focus areas signalled by each of the regulators in this space. Over the past 12 months there have been a number of regulatory initiatives announced by the Australian Government and regulators including:
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