The Australian Prudential Regulation Authority (APRA) used parliamentary committee testimony to outline its 2024-25 supervisory and policy agenda, with a sharpened focus on “getting the balance right” through more proportionate, efficient regulation while maintaining financial and operational resilience. The update also flagged heightened scrutiny of superannuation trustee expenditure and platform product governance, alongside ongoing work on governance reforms, macroprudential readiness, cyber resilience and operational risk management. APRA said it has announced nine initiatives to increase proportionality and reduce regulatory burden, including streamlining the bank licensing process and formalising a three-tier approach to proportionality. Other commitments cover promoting access to cost-effective reinsurance in general insurance, reducing life insurers’ capital requirements for annuities, and removing duplicative or unnecessary requirements, particularly in data reporting. In superannuation, APRA has written to trustees requiring accelerated and escalated action to safeguard member investments held in platform products after a review identified weak practices in onboarding and monitoring; each in-scope Platform Trustee will receive an individual assessment letter and supervisory intensity will be increased as needed. The testimony also noted that macroprudential settings, including the mortgage serviceability buffer, were kept on hold in July, while work continues with banks on implementation aspects of tools that may include limits on new high debt-to-income lending or restrictions on new investor or interest-only loans. Next steps include finalising reforms to APRA’s cross-industry governance framework, with an interim update on the consultation to follow shortly, and publishing the results of APRA’s inaugural System Stress Test in the coming months. APRA also pointed to further work to strengthen cyber resilience across regulated industries and referenced the July commencement of CPS 230 (operational risk management), and noted Deputy Chair Margaret Cole’s intention to leave APRA by the end of her current term next year.
Australian Prudential Regulation Authority 2025-10-09
Australian Prudential Regulation Authority outlines proportionality push and tighter superannuation platform oversight in parliamentary testimony
The Australian Prudential Regulation Authority (APRA) outlined its 2024-25 agenda, emphasizing proportionate regulation and financial resilience. Key initiatives include streamlining bank licensing, enhancing superannuation trustee oversight, and reducing regulatory burdens. APRA plans to finalize governance reforms, strengthen cyber resilience, and publish a System Stress Test. Macroprudential settings remain unchanged, with ongoing work on high debt-to-income lending limits. Deputy Chair Margaret Cole will depart at the end of her term next year.