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Australian Prudential Regulation Authority Act 1998 (APRA ACT)

Section 59 of the APRA Act requires APRA to report on:

  • the activities of persons conducting investigations under Division 2 of Part II and section 61 of that Act the Banking Act 1959;
  • the activities of Banking Act statutory managers (within the meaning of the Banking Act 1959); the activities of Insurance Act statutory managers (within the meaning of the Insurance Act 1973);
  • the activities of Life Insurance Act statutory managers (within the meaning of the Life Insurance Act 1995);
  • the operation of Division 2AA (Financial Claims Scheme for account-holders with insolvent ADIs) of Part II of the Banking Act 1959;
  • the operation of Part VC (Financial Claims Scheme for policyholders with insolvent general insurers) of the Insurance Act 1973;
  • the number of times during the year that APRA determined, under subsection 13(1) of the Financial Sector (Collection of Data) Act 2001, a reporting standard that is not a legislative instrument;
  • and the exercise during the year of APRA’s powers under Part 15 of the Retirement Savings Accounts Act 1997 (RSA Act) and Part 29 of the Superannuation Industry (Supervision) Act 1993 (SIS Act).

During 2019/20, APRA appointed two people to conduct an investigation under Division 2 of Part II of the Banking Act 1959 in relation to Westpac Banking Corporation. On 17 June 2020, APRA announced that due to the potential for significant overlap in factual background and potential contraventions between this investigation and an investigation that ASIC was conducting under the Corporations Act 2001, APRA had delegated functions and certain powers in relation to APRA’s investigation to ASIC. This will allow ASIC to take court action which it considers appropriate as a result of its investigation. ASIC will, however, consult and collaborate with APRA in relation to any such proceedings.

The delegation is designed to achieve greater efficiencies in the investigative process and a more coordinated regulatory outcome. It will avoid significant duplication in the investigative process, including compulsory examinations of the same individuals in respect of the same matters, and will avoid the potential for two sets of court proceedings for the same conduct. It is therefore likely to achieve a swifter and more effective regulatory response as a result.

There were no appointments under the Banking Act 1959 continuing from the previous year.

APRA did not appoint statutory managers under the Banking Act 1959, Insurance Act 1973 or Life Insurance Act 1995. There were no appointments continuing from the previous year.

There were no schemes in operation under Division 2AA of Part II of the Banking Act 1959. On 15 October 2009, the Minister made a declaration under section 62ZZC of the Insurance Act 1973 that Division 3 of Part VC of that Act applied in relation to one general insurer28. No payments were made from the Financial Claims Scheme Special Account in 2019/20 to satisfy claims against this general insurer.

APRA did not determine any reporting standards under subsection 13(1) of the Financial Sector (Collection of Data) Act 2001 during 2019/20 that were not legislative instruments.

APRA did not exercise its powers under Part 15 of the RSA Act in 2019/20.

APRA exercised its powers under Part 29 of the SIS Act in relation to particular entities or persons as set out below:

Exemptions exercised under the SIS Act

Exemption number

Date

Provision of SIS Act / regulations exempted

A7 of 2019

21/10/19

s.93(3)

A8 of 2019

03/10/19

s.93(3)

A9 of 2019

29/10/19

r.1.06(8)(d)

A10 of 2019

29/10/19

r.1.06(8)(d)

A11 of 2019

15/11/19

s.29MB(1)

A1 of 2020

27/02/20

r.1.06(8)(d)

A2 of 2020

12/05/20

s.93(3)

A3 of 2020

12/05/20

r.9.04D, r9.04I and r9.09

A4 of 2020

25/06/20

s.93(3)

A5 of 2020

30/06/20

r.1.06(7)(g)

Modifications exercised under the SIS Act

Modification number

Date

Provision of SIS Act / regulations modified

A1 of 2020

26/03/20

s.10(1)

A2 of 2020

20/03/20

s.10(1)

A3 of 2020

24/03/20

s.29C(4)

A4 of 2020

05/05/20

r.1.06

A5 of 2020

05/05/20

r.1.06

A6 of 2020

05/05/20

r.1.03(1)