The Australian Prudential Regulation Authority (APRA) has updated industry on its consultation to modernise cross-industry governance prudential standards and guidance for banks, insurers and superannuation trustees, signalling changes to parts of the package to avoid undue constraints on boards. Feedback gathered over a three-month consultation, including 57 meetings and roundtables with more than 150 stakeholder organisations and almost 80 written submissions, showed broad support for measures aimed at reducing burden and regulatory overlap, alongside caution about the impact of some proposals. In response, APRA will replace its proposed 10-year non-executive director tenure limit (with a possible two-year extension) with a hard 12-year limit with short extensions in limited circumstances; it will not proceed with a proposal that banks and insurers have at least two independent directors (including the chair) who are not on other group boards; and it will not proceed with a proposal requiring significant financial institutions to engage early with APRA on responsible person appointments and succession planning. APRA also plans clarifications or adjustments on individual director skills, perceived conflicts of interest, and publication of registers of relevant interests and duties. APRA will continue engaging with industry and plans to release updated prudential standards and guidance for further consultation in the first half of 2026.
Australian Prudential Regulation Authority 2025-10-24
Australian Prudential Regulation Authority drops two governance proposals and shifts to a 12-year non-executive director tenure cap
The Australian Prudential Regulation Authority (APRA) updated its consultation on governance standards for banks, insurers, and superannuation trustees. APRA will implement a 12-year tenure limit for non-executive directors with limited extensions and will not require two independent directors not on other group boards. Early engagement on responsible person appointments won't be mandated. Clarifications on director skills, conflicts of interest, and registers of interests are planned, with further consultation expected in the first half of 2026.