Financial Regulator Assessment Authority

The Financial Services Royal Commission recommended the establishment of the Financial Regulator Assessment Authority (FRAA) to assess the effectiveness and capability of each of the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC). The FRAA will be independently Chaired and will regularly review and report on the performance of APRA and ASIC. The FRAA is independent in the performance of its functions and exercise of its powers. In particular, it is not subject to directions by anyone, including the Minister, in relation to how a particular assessment is undertaken. It has full discretion in performing its functions and exercising its powers. The FRAA will not have the ability to direct, make, assess or comment on specific cases of the regulators’ enforcement actions, regulatory decisions, complaints and like matters. Every two years, the FRAA will assess and report to the Minister on APRA’s effectiveness and capability and on ASIC’s effectiveness and capability; and on an ad hoc basis when requested by the Minister, report to the Minister on any matter relating to either or both of APRA’s effectiveness and capability and ASIC’s effectiveness and capability.