Regulatory amendments are being proposed by the Australian Treasury Department which would enhance the power of APRA.
APRA is the Australian Prudential Regulation Authority which regulates the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry.
APRA’s mission is to “establish and enforce prudential standards and practices designed to ensure that, under all reasonable circumstances, financial promises made by institutions we supervise are met within a stable, efficient and competitive financial system.”
They also act as the national statistical agency for the Australian financial sector and play a role in preserving the integrity of Australia’s retirement incomes policy.
The adjustments would allow APRA to have stronger scrutiny, investigation and intervention powers on life and no-life insurance companies in Australia. This could force insurers to recapitalize and provide self-incriminating material.
The proposed Financial Sector Legislation Amendment Bill 2010 and Corporations Amendment Regulations 2010 were released for public comment in January. The bills propose a number of amendments to legislation including the insurance act and life insurance act.
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