Australian Prudential Regulation Authority disqualifies former Xinja Bank chair Lindley Edwards for six years over capital reporting failures

The Australian Prudential Regulation Authority has disqualified former Xinja Bank chair Lindley Edwards for six years from being an accountable person of any authorised deposit-taking institution under the Financial Accountability Regime. The ban also applies to any authorised non-operating holding company of an ADI and its significant related entities. The action follows APRA's investigation into undisclosed side agreements with some Xinja investors in 2020 that altered the nature of capital the bank reported to APRA as CET1 capital. APRA found Edwards failed to comply with accountability obligations under the Banking Executive Accountability Regime, which the FAR superseded for the banking industry in March 2024. The findings covered failures to exercise due skill, care and diligence when Xinja raised capital she should have known could not qualify as CET1 because of the side agreements, to ensure the capital was properly classified and reported and the agreements disclosed to APRA, to deal with APRA in an open, constructive and cooperative way, and to put in place adequate procedures to prevent harm to Xinja's prudential standing. APRA said the decision did not involve allegations or findings of dishonesty or lack of integrity. It is APRA's third disqualification under the FAR and the third involving Xinja, after former chief executive Eric Wilson and non-executive director Craig Swanger were disqualified in October 2025.