Australia’s Financial Regulators Under Scrutiny: Frequency of Assessments to be Reduced

The Australian Government has announced plans to reduce the frequency of reviews conducted by the Financial Regulator Assessment Authority (FRAA), an independent statutory body responsible for evaluating the effectiveness and capability of Australia’s top financial regulatory bodies, ASIC and APRA.

Reducing Review Frequency

As part of a move aimed at streamlining its operations, the Government has decided to reduce the frequency of FRAA reviews from biennial to a five-year cycle. The revised review cycle is expected to be implemented later this year, following amendments to the FRAA Act.

Next Assessments

• The next assessment will focus on ASIC’s effectiveness and capability, with the review commencing in 2026.
• APRA will come under scrutiny in 2027.

FRAA Secretariat Function

The FRAA secretariat function, currently based within Treasury, will continue to operate between review cycles, ensuring continuity and consistency in its evaluations.

New Panel of Experts

Ahead of the next review cycle, a new panel of experts is set to be appointed, bringing fresh perspectives and insights to the assessment process.

Industry Reaction

Industry insiders are hailing the move as a positive step towards improving transparency and accountability within Australia’s financial regulatory landscape. With the FRAA at the helm, stakeholders can expect increased scrutiny and oversight of ASIC and APRA’s performance, ultimately benefiting consumers and investors alike.

Conclusion

As the dust settles on this significant change, one thing is clear - Australia’s financial regulators will be held to a higher standard than ever before. The reduced frequency of reviews will allow for more in-depth assessments, ensuring that these important bodies are operating effectively and efficiently to protect Australian consumers and investors.