The Financial Regulator Assessment Authority Bill 2021 and the Financial Regulator Assessment Authority (Consequential Amendments and Transitional Provisions) Bill 2021 have been introduced to Parliament to give effect to the recommendations 6.13 and 6.14 of the Financial Services Royal Commission that a new statutory body be established to assess the effectiveness and capability of each of APRA and ASIC.

UPDATE: Bill passed on 23 June 2021. Assent given 29 June.

The Financial Regulator Assessment Authority’s activities are designed to complement and augment the existing external accountability mechanisms that apply to the regulators, not to duplicate them. Its reports would inform and improve the performance of other accountability mechanisms, such as Parliamentary committees, and
would also allow for comparison of regulator performance against their domestic and international peers where practicable.

The Authority’s key functions are:

• every two years, to assess and report to the Minister on APRA’s effectiveness and capability and on ASIC’s effectiveness and capability; and
• on an ad hoc basis when requested by the Minister, to report to the Minister on any matter relating to either or both of APRA’s effectiveness and capability and ASIC’s effectiveness and capability.

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