The Government Releases Paper on APRA's Resolution Powers

The Minister for Financial Services and Superannuation, Bill Shorten, today released for public consultation a paper titled Strengthening APRA's Crisis Management Powers.  This paper seeks comments on a range of options to enhance Australia's financial sector. The closing date for submissions is 14 December 2012. A key proposed reform is to amend the Banking Act 1959, Insurance Act 1973 and Life Insurance Act 1995 to enable the Australian Prudential Regulation Authority (APRA) to direct a regulated entity (including an authorised non‐operating holding company (NOHC) and subsidiaries) not to make market or public disclosures of information in certain circumstances for a limited period (capped at 48 hours), where:
  •  APRA is of the view that a regulated entity, authorised NOHC or subsidiary is in, or is likely soon to be in, financial difficulty;
  •  APRA is working with the entity to implement a resolution to address its financial difficulty;
  •  APRA is of the view that the disclosure of the entity’s financial condition ahead of the disclosure of the intended resolution would destabilise the entity and potentially impede its ability to implement the resolution; and
  •  APRA has consulted with ASIC and the Treasurer before giving the direction.
Links: 
The Government Releases Paper on APRA's Resolution Powers
Originally Published: 
12/09/2012