In conducting its prudential supervision of APRA‑regulated institutions and in revising its prudential standards and guidance, APRA should:
- build a supervisory program focused on building culture that will mitigate the risk of misconduct;
- use a risk‑based approach to its reviews;
- assess the cultural drivers of misconduct in entities; and
- encourage entities to give proper attention to sound management of conduct risk and improving entity governance.
The Government supports APRA acting on this recommendation.