APRA urges self-regulation

APRA the Australian prudential regulation authority ASIC the Australian Securities and Investments Commission wayne byres

9 August 2019
| By Mike |
image
image
expand image

The chairman of the Australian Prudential Regulation Authority (APRA), Wayne Byres, has made a strong case for the financial services industry not to walk away from the concept of self-regulation.

In an address to a Sydney conference, Byres said that while the Royal Commission had supported stronger powers for both APRA and the Australian Securities and Investments Commission (ASIC), the regulatory framework was rightly founded on boards and executives ultimately being responsible for the activities and performance of their companies.

“While after-the-event punishment will act as a general deterrent against illegal behaviour, more than just compliance with the law is needed to restore the financial sector’s reputation,” the APRA chairman said. “Individuals, companies and industries must better regulate their own behaviour: to do not only what is legal, but also have regard to what is right.”

 “The optimal model of financial regulation – lowest cost, best outcomes – therefore requires self-regulation to play its part,” Byres said.

He said that underpinned by society’s value and norms, there would always need to be a layer of formal regulation established by Government in the public interest, but that it could be both much reduced, and at the same time made much more effective, when it was reinforced by three layers of robust self-regulation: “at the industry level, at the company level, and at the level of the individual”. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

4 days ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 22 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 1 hour ago