The Australian Prudential Regulation Authority (APRA) has proposed eight measures to strengthen governance in regulated financial institutions, including banks, insurers, and registrable superannuation entity (RSE) licensees. APRA’s desired outcome is for entities to maintain a robust governance framework by requiring stronger governance practices, improved risk management and reduced likelihood of misconduct, loss and failure – objectives which are in keeping with APRA’s mandate and objectives. Achieving these objectives will ultimately be based on the final detail and how the changes are implemented.
The role of Boards, and the skills of Directors who constitute them, is always evolving. Incredible technological change, political uncertainty and changing customer needs means that more than ever, financial institutions need Boards, and therefore, Directors with special capabilities. On top of that, Directors without strong operational expertise are going to face enormous challenges when it comes to guiding their organisation through these challenges while successfully implementing their chosen strategy.
In this article we provide a summary of the problem statements along with proposals. We also share our insights on the proposals and raise questions for consideration.
Want to be a part of the conversation?
Join us on May 1st 2025, at 1:00-2:00PM for a webinar with industry leaders Ian Laughlin, Julie Elliott and Neil Cochrane where we’ll discuss the proposals with a view to preparing a submission from PFS to APRA.
Click here to register – open to Directors, Chairs, and other C-Suite Executives in APRA regulated entities.
Note we will not quote any individual participant views in the APRA submission.
