Frydenberg boosts APRA funding

The Federal Government has moved to strengthen supervision of the financial services industry, boosting APRA's funding and reappointing chair Wayne Byers for five years.

The prudential regulator will welcome an extra $58.7 million in funding over the next four years, in a move set to increase the number of frontline supervisors at Australia's largest financial institutions.

The funding will also see APRA conduct a review of its enforcement strategy and use of formal enforcement powers across its industries of responsibility.

The Government's decision to boost APRA's financial muscle comes after criticism was levelled at the prudential regulator for using its formal enforcement powers sparingly.

During a Royal Commission hearing in August this year, APRA deputy chair Helen Rowell confirmed the prudential regulator had only once banned a person from being a responsible person in the last 10 years.

In the five preceding years, APRA administratively banned 133 people. The change in its tact appeared to coincide with a change in the law, which required APRA take matters to court.

Treasurer Josh Frydenberg said the regulator's new funding would support it in developing a stronger focus on accountability and enforcement in the financial system.

He added the reappointment of Byres was important for stability, given the significant reform occurring in the financial system, noting the regulator's interventions in the housing market and its BEAR implementation.

Read more: APRAFederal GovernmentWayne ByersTreasurer Josh FrydenbergBEARHelen RowellRoyal Commission
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