APRA and ASIC should each be subject to at least quadrennial capability reviews. A capability review should be undertaken for APRA as soon as is reasonably practicable.
The Government agrees to conduct regular capability reviews going forward and to a capability review of APRA commencing in 2019, chaired by Mr Graeme Samuel AC.
The capability review will build on the recently completed International Monetary Fund’s Financial Sector Assessment Program, which included an assessment of APRA’s policy and supervisory framework for banks and insurers.
This also responds to the recommendation of the Productivity Commission’s report Superannuation: Assessing Efficiency and Competitiveness to conduct a capability review of APRA.