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Memorandum of Understanding - ASIC & APRA - Media Release - 12 Oct 1998APRA / ASIC Mou (PDF - 14kb) Australian Securities and Investments Commission (ASIC) Chairman Alan Cameron and Australian Prudential Regulation Authority (APRA) Chief Executive Officer Graeme Thompson today signed a Memorandum of Understanding setting out how the two bodies will cooperate in the regulation of the Australian financial system. APRA is responsible for the prudential supervision for banks, life and general insurance companies and superannuation funds, ASIC is responsible for monitoring and promoting market integrity and consumer protection in relation to the Australian financial system, the provision of financial services and the payment system. The MoU sets out the framework for the two agencies to work together to achieve enforcement and compliance outcomes. Under the agreement APRA and ASIC will notify each other of any proposed changes in regulatory policy which affects the market or any regulatory decisions likely to impact on the other's area of responsibility. In this MoU APRA and ASIC recognise that cooperation is vital to promote confidence in the financial system as well as the confident and informed participation of all stakeholders in that system. Because of this, the MoU establishes a four person Co-ordination Committee consisting of two senior members of ASIC and two from APRA. This Committee will ensure there is a continual exchange of information between the two bodies including assessments of the administration and health of the financial areas that each body supervises, any major developments in the financial sectors that each supervises relevant to the performance of their regulatory responsibilities and information on individual regulated areas which raise particular concerns. Mr Cameron said the financial system expects the two major regulators to work closely together and this MoU is a public commitment that this will happen. "The fact I am a member of both the Commission and the Authority guarantees that both organisations will liaise regularly and are abreast of any developments in enforcement and compliance initiatives." Mr Thompson said this MoU provides amore formal framework for cooperation between APRA and ASIC which has already been working very well. "Such cooperation is absolutely essential to the effective implementation of the government's financial reforms," Mr Thompson said. For further information contact:
Irene O'Brien
Tom Karp Issued: Monday 12 October 1998 |
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