The Australian Prudential Regulation Authority (APRA) has updated industry on its consultation to modernise cross-industry governance prudential standards and guidance, confirming it will revise three proposals to avoid placing undue constraint on boards. The package now centres on a hard 12-year tenure limit for non-executive directors with limited short extensions, while two proposals will no longer proceed. Feedback gathered through 57 meetings and roundtables with more than 150 stakeholder organisations and almost 80 written submissions showed broad support for the overall package, particularly measures aimed at reducing burden and regulatory overlap, alongside concerns about potential impacts of specific proposals. As a result, APRA has dropped the proposed requirement for banks and insurers to have at least two independent directors, including the chair, who are not on other group boards, and will not proceed with the proposed requirement for significant financial institutions to engage early with APRA on responsible person appointments and succession planning. APRA will also clarify or adjust proposals covering individual director skills, perceived conflicts of interest, and the publication of registers of relevant interests and duties. Updated prudential standards and guidance are expected to be released for further consultation in the first half of 2026.
Australian Prudential Regulation Authority 2025-10-24
Australian Prudential Regulation Authority amends governance reform consultation for banks insurers and superannuation trustees including a 12-year director tenure cap
The Australian Prudential Regulation Authority (APRA) has revised its proposals to modernize cross-industry governance prudential standards, focusing on a 12-year tenure limit for non-executive directors and dropping requirements for independent directors and early engagement on appointments. Updated standards and guidance will be open for further consultation in the first half of 2026.