APRA’S CRISIS MANAGEMENT POWERS
On 20 October 2015, the Government committed to provide regulators with clear powers in the event a prudentially regulated financial entity or financial market infrastructure fails as part of its response to the Financial System Inquiry.
This consultation seeks stakeholder views on the exposure draft of Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017 (the draft Bill), which strengthens APRA’s crisis management toolkit in relation to banks and insurers. Draft explanatory materials are provided to assist readers in understanding the draft Bill.
The draft Bill includes amendments to the Banking Act 1959, Insurance Act 1973, Life Insurance Act 1995, Australian Prudential Regulation Authority Act 1998, Payment Systems and Netting Act 1998 and Financial Sector (Business Transfer and Group Restructure) Act 1999.
These amendments enhance APRA’s crisis management powers by providing:
- clear powers that enable APRA to set requirements on resolution planning and ensure banks and insurers are better prepared for a crisis; and
- an expanded set of crisis resolution powers that equip APRA to act decisively to facilitate the orderly resolution of a distressed bank or insurer.
Making a Submission
Interested parties are invited to comment on the consultation papers.
While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.
All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.
Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
Closing date for submissions: Friday, 8 September 2017
Address written submissions to:
Senior Adviser
Banking, Insurance and Capital Markets Unit
Financial System Division
The Treasury
Langton Crescent
PARKES ACT 2600
For enquiries please call Patrick Mahony 02 6263 3237.
KEY DOCUMENTS