The Australian Prudential Regulation Authority (APRA) claims it is on-track to meet 10 of the recommendations that came out of the Royal Commission of Misconduct into Banking, Superannuation and Financial Services.
Last month, APRA came under fire for the results of the capability review, but earlier this week, the regulator released its six-monthly report related to the implementation of the recommendations from the Royal Commission into banking, superannuation and the financial services sector.
Progress with Recommendations
Recommendation 1.12: Valuations of land
APRA is on-track to meeting Recommendation 1.12, regarding valuation of land, and indicated the final version of the standard APS 220 will be published before the end of the year.
Recommendation 1.17: Bear Product Responsibility
A consultation was released last month, and the industry can expect to see the finalised standard by the end of this year.
Recommendation 4.14: Additional scrutiny for related party engagements & Recommendation 4.15: Status attribution to be fair and reasonable
The regulator said it would consult on the proposed changes made in April of this year and would look to finalise the framework in 2020.
The regulator also indicated it sent a letter to RSE Licensees that would be in their interest regarding commissions and independent reviews.
Recommendation 5.1: Supervision of remuneration—principles and standards and guidance & Recommendation 5.2: Supervision of remuneration—aims
After the consultation draft standard Prudential Standard CPS 511 Remuneration, published last month, there will be a final prudential standard published next year.
APRA also included that work is ‘underway’ towards finding a better means to collect information so it can better assess remuneration frameworks.
Recommendation 5.3: Revised prudential standards and guidance
As with the previous two recommendations, the finalised version CPS 511 will be published next year and APRA will be working on developing new ways of collect information to better assess remuneration frameworks in practice.
Recommendation 5.7: Supervision of culture and governance
The regulator said it will build on resourcing from the 2019 budget, and will publish a statement of their approach by the end of this year.
Recommendation 6.10 Co-operation Memorandum & Recommendation 6.12
APRA indicated it is working with the Australian Securities and Investments Commission (ASIC) on their updated MOU, which will be published at the end of this year. It also added it is ‘finalising its new organisational structure’ and developing accountability statements.
All this will be published by the end of this year