On track: APRA reveals RC progress

APRA is on track to meet its deadlines to implement the recommendations stemming from the Royal Commission.

The prudential regulator has revealed its responses to each of the 10 recommendations relevant to APRA following the release of Kenneth Hayne's final report into misconduct in the financial services industry,  with four due to be ticked off by the end of the year and an additional five due by the end of 2020.

Importantly, Hayne's recommendation that APRA and ASIC prepare and maintain a joint memorandum setting out how the two will co-operate with each other within their statutory obligations, is due for publication within the next four months.

The two regulators most responsible for overseeing the financial services industry were lambasted by the Commissioner in his final report, with Hayne calling for regular capability reviews and information sharing "to the maximum extent practicable".

In response, APRA said more formal arrangements for "inter-agency coordination" were being established between the two regulators, "to ensure maximum alignment of activities in areas of common interest."

In respect to Hayne's call for increased scrutiny on related party engagements between super funds and life insurers, APRA said any proposed change to its prudential framework as a result of the post-implementation review it recently completed would be open to consultation later in the year, with changes to be finalised in 2020.

The regulator also said its examination of the 12 matters referred to it by Commissioner Hayne during the Royal Commission was "advanced", with discussion ongoing between APRA, ASIC and "other relevant agencies" to address the matters.

Read more: APRARoyal CommissionASICKenneth Hayne
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