ASIC talks to APRA on Members Equity

Grant Chapman

The Australian Securities and Investments Commission (ASIC) has told a Parliamentary Committee that it has been liaising with its sister regulator, the Australian Prudential Regulation Authority (APRA), on questions relating to Members Equity Bank.

Answering questions put to it by the Parliamentary Joint Committee on Corporations and Financial Services, ASIC made clear that whether Members Equity Bank had adequate funding was an issue that fell under the jurisdiction of APRA.

Responding to a question on notice put by committee member and Liberal Senator Grant Chapman, ASIC said that the provision of further funding to Members Equity Bank by its superannuation fund shareholders was also a matter for APRA and the funds themselves.

“There may also be an issue about whether the superannuation fund trustees have complied with their duties to avoid conflicts of interest because the funds have invested in, and also own shares in, Members Equity Bank,” the ASIC response said.

“Again, this issue comes under APRA’s jurisdiction,” it said.

However, ASIC’s written response added: “Trustees that are financial services licensees are also regulated by ASIC under the Corporations Act 2001, which imposes the obligation to have adequate arrangements in place to manage conflicts of interest.”