The Financial Regulator Assessment Authority Bill 2021 has been passed, fulfilling recommendations 6.13 and 6.14 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Under the legislation, a new independent body, the Financial Regulator Assessment Authority (FRAA), will be established to regularly review and report on the effectiveness and capability of the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA).
The FRAA’s biennial reports on the regulators’ effectiveness and capability will be tabled in the Parliament and will complement the existing accountability mechanisms that apply to the regulators.
The FRAA will consist of three independent statutory appointees. The full membership of the FRAA will be announced by the government in due course.
In its first year, the FRAA will be tasked with assessing the effectiveness and capability of ASIC so as to assist newly appointed ASIC chair Joseph Longo in ensuring ASIC is operating consistently with the government’s Statement of Expectations and is supporting Australia’s economic recovery from the COVID-19 pandemic.
