24-718: The Australian Prudential Regulation Authority ( APRA ) is a statutory authority of the Australian Government and the prudential regulator of the Australian financial services industry. APRA was established on 1 July 1998 in response to the recommendations of the Wallis Inquiry. APRA's authority and scope is determined pursuant to the Australian Prudential Regulation Authority Act, 1998 (Cth). APRA
48-464: A corporate Commonwealth entity or a non-corporate Commonwealth entity. A statutory authority may also be a body within a Commonwealth entity, exercising the powers given by Parliament but administratively part of the entity." A statutory corporation is defined in the government glossary as a "statutory body that is a body corporate, including an entity created under section 87 of the PGPA Act" (i.e.
72-491: A public inquiry. References to the Commission stipulate the length and terms of the project and may cover any sector of the Australian economy ; address a particular industry or cut across industry boundaries; and involve wider social or environmental issues. Most projects are specified for nine or twelve-month duration, although some may be six or fifteen months. Both studies and inquiries accept submissions from members of
96-666: A statutory authority may be a statutory corporation). An earlier definition describes a statutory corporation as "a statutory authority that is a body corporate", and the New South Wales Government 's Land Registry Services defines a state-owned corporation as "a statutory authority that has corporate status". Statutory authorities at the State or Territory level are established under corresponding State or Territory laws. Each statutory authority tends to have its own enabling legislation, or originating act , even if it
120-462: Is a body set up by law ( statute ) that is authorised to implement certain legislation on behalf of the relevant country or state, sometimes by being empowered or delegated to set rules (for example regulations or statutory instruments ) in their field. They are typically found in countries which are governed by a British style of parliamentary democracy such as the United Kingdom and
144-401: Is largely funded by levies on the financial institutions that it supervises. APRA is governed by an Executive Group, usually consisting of four people. All are statutory appointees. The current chair of APRA is John Lonsdale. Helen Rowell and Margaret Cole are Deputy Chairs. Suzanne Smith and Therese McCarthy Hockey are additional APRA Members. The Insurance and Superannuation Commission (ISC)
168-527: The Commonwealth countries like Australia , Canada , India and New Zealand . They are also found in Israel and elsewhere. Statutory authorities may also be statutory corporations , if created as a body corporate . '. A statutory authority is a generic term for an authorisation by Parliament given to a person or group of people to exercise specific powers. A statutory authority can be established as
192-745: The Productivity Commission Act 1998 , and replaced the Industry Commission, the Bureau of Industry Economics and the Economic Planning Advisory Commission. These three bodies were amalgamated on an administrative basis in 1996. The Commission's remit may extend beyond Australia, such as when the Commission worked jointly with the former New Zealand Productivity Commission on a study into Trans-Tasman Economic Relations in 2012 and in
216-655: The Commission unusual among public sector institutions around the world is the combination of three core principles which it embodies: The Commission traces its lineage back to the Tariff Board, which was established in the 1920s. On 1 January 1974, the Tariff Board became the Industries Assistance Commission and then in 1989 it became the Industry Commission. The Productivity Commission was created as an independent authority in April 1998 by
240-669: The Treasurer on a full or part-time basis. Commission staff are Commonwealth public servants . The average number of employees in the 2021-22 financial year was 182. The Commission reports formally through the Treasurer to the Australian Parliament, where its inquiry reports are tabled. Final inquiry reports must be tabled in Parliament within 25 sitting days of the Government receiving the report. What makes
264-532: The basis of government policy. However, the Commission does not administer government programs or exercise executive power and governments are not required to act on its recommendations; although in practice, many recommendations are accepted. The Commission operates within the Treasury portfolio and its core function involves responding to references from the Treasurer , which can request a commissioned study or
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#1732780841012288-665: The effectiveness of government services provided to Aboriginal and Torres Strait Islander peoples . The Commission can undertake Commission-initiated research, and operates as the Australian Government's competitive neutrality complaints mechanism. The Commission is headed by a Chair and between 4 and 12 other Commissioners, who are appointed by the Governor-General for periods up to five years. Some commissioners are required to have particular skills and experience: Associate Commissioners can be appointed by
312-512: The following areas; Productivity Commission The Productivity Commission is the Australian Government's principal review and advisory body on microeconomic policy, regulation and a range of other social and environmental issues. The Productivity Commission was created as an independent authority by the Productivity Commission Act 1998 , an Act of the Australian Parliament . Productivity Commission reports often form
336-766: The previous role of the Private Health Insurance Administration Council in July 2015. In 2018, Peter Harris , the chair of the Productivity Commission , was critical of the role of APRA in limiting price competition in banking. Representatives of APRA appeared before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry during 2018. In 2018, APRA created
360-501: The public, although inquiries are additionally required (under the Act) to undertake formal public consultations . All reports are publicly released. In addition, the Commission acts as the secretariat to the intergovernmental Review of Government Service Provision, and produces annually the Report on Government Services, as well as regular reports that contribute to a better understanding of
384-728: The restricted authorised deposit-taking institution (RADI) licensing framework to encourage new entrants and competition to the existing banking system. APRA establishes prudential standards with which regulated institutions must comply. It also creates and maintains Prudential Practice Guides (PPGs) to provide guidance on APRA's view of "sound practice" in particular areas for specific industries, as well as areas common to most APRA-regulated entities ("cross-industry guides"). PPGs frequently discuss statutory requirements from legislation, regulations or APRA's prudential standards, but do not themselves create enforceable requirements. Statutory authority A statutory body or statutory authority
408-564: The same fashion as an act of parliament, but usually with specific initials (depending on the authority) and a number. Just as with laws enacted by Parliament, all laws made by a statutory authority must be published in the Government Gazette. The Parliament of Australia , or a State or Territory Parliament , will delegate its authority to a statutory authority for several reasons; The power to enact legislation has been delegated by Australian Parliaments (State and/or Federal) in
432-689: The time, the regulators of the Australian financial services industry were based on the institutions and not the regulatory function. APRA's predecessor regulators were the Insurance and Superannuation Commission, the Reserve Bank of Australia and the Australian Financial Institutions Commission (AFIC). The Wallis Inquiry recommended a new structure. The role of the Reserve Bank of Australia (RBA)
456-871: Was absorbed into the Australian Prudential Regulation Authority on 1 July 1998. In June 1996, the Financial System Inquiry (known as the Wallis Inquiry) was established to examine the results of the deregulation of the Australian financial system, to examine the forces driving further change, particularly technological, and recommend changes to the regulatory system to ensure an "efficient, responsive, competitive and flexible financial system to underpin stronger economic performance, consistent with financial stability, prudence, integrity and fairness." At
480-630: Was amended to deal with monetary policy and systemic stability with the Payments System Board considering payments systems regulation. The role of the Australian Prudential Regulation Commission (later to become APRA) was amended to deal with prudential regulation of authorised deposit-taking institutions (ADIs), life and general insurance, and superannuation including Industry superannuation . The Corporations and Financial Services Commission
504-680: Was established before the relevant over-riding legislation. For example, the Commonwealth Scientific and Industrial Research Organisation (CSIRO) was established in 1949 by the Science and Industry Research Act , but it has since come under the jurisdiction of the Commonwealth Authorities and Companies Act 1997 as legislation covering statutory authorities has evolved. Laws made by statutory authorities are usually referred to as regulations. They are not cited in
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#1732780841012528-599: Was established on 1 July 1998. It oversees banks, credit unions , building societies , friendly societies , general insurance , health insurance , reinsurance , and life insurance companies, and most members of the superannuation industry . It ensures that these institutions keep their financial promises; that is, that they will remain financially sound and able to meet their obligations to depositors, fund members and policy holders. APRA currently supervises institutions holding A$ 8.6 trillion in assets for Australian depositors, policyholders and superannuation fund members. APRA
552-923: Was formally established on 23 November 1987, following the proclamation of the Insurance and Superannuation Commissioner Act 1987. It was constructed from the Superannuation Division of Treasury, The Office of the General Insurance Commissioner, The Office of Life Insurance Commissioner, and The Office of the Australian Government Actuary. The commission was based at the Australian Automobile Association Building, Canberra and also had offices in Melbourne and Sydney. The Insurance and Superannuation Commission
576-707: Was renamed and its role expanded as the Australian Securities and Investments Commission (ASIC) to deal with market integrity, consumer protection and corporations. APRA was established on 1 July 1998 under the Australian Prudential Regulation Authority Act 1998 . APRA became prominent in the collapse of HIH Insurance in 2001 and for its investigation into the National Australia Bank foreign currency deal scandal in 2004. APRA took over
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