In his opening statement to the House of Representatives Standing Committee on Economics, Lonsdale outlined the recent changes at APRA and the Australian financial sector.
“One of the key constants in our updates to the committees … and our message to the Australian community is that the Australian financial system is fundamentally sound. However, in these uncertain times, APRA needs to be extra vigilant in managing the resilience of the system to protect depositors, insurance policyholders, and superannuation members,” Lonsdale said.
Lonsdale added that APRA recently finalised new requirements and guidance to strengthen the preparedness of insurers, banks, and superannuation funds to respond to crises.
“The reforms are the culmination of several years of policy development to ensure the financial system is better prepared to manage periods of stress,” he said. “In addition, we expect to publish a new cross-industry standard on operational risk management in the next month or so. This standard, CPS 230, is designed to strengthen the management of operational risk in the banking, insurance, and superannuation industries, including the management of contractual arrangements with service providers.”
In his speech, Lonsdale noted APRA deputy chair Helen Rowell’s retirement from the regulator at the end of June after 21 years of service.
“Helen held a number of senior roles at APRA before becoming an executive board member in 2013,” he said. “Helen has made a significant contribution to APRA in her time here, especially in superannuation, where she oversaw the creation and implementation of APRA’s prudential framework for that industry.
“Helen was the first woman appointed as an APRA executive director, member, and deputy chair. She will be greatly missed by all who worked with her here, and we wish Helen all the best wherever the next stage of her career takes her.”
APRA currently focuses on embedding recent regulatory reforms, boosting operational resilience, and ensuring its regulated entities have sufficient financial strength to act as a buffer against any emerging financial stresses.
The regulator’s current key policy priorities include:
Meanwhile, the regulator’s key supervision priorities include: