Title page
Contents
Chair's foreword 3
Membership of the Committee 7
Terms of reference 8
Abbreviations 9
1. Introduction 10
Background 10
Organisational change 11
Scope and conduct of the review 12
2. Current issues in prudential regulation 14
Overview 14
Improving APRA's capability 15
Leadership and culture 16
Resourcing 18
Enforcement 20
Supervision 23
Cooperation between regulators 24
Rebuilding trust in the financial services sector 25
Raising standards in governance, culture, remuneration, and accountability 26
Banking Executive Accountability Regime 30
Prudential inquiries 32
Self-assessments 33
Veto power 35
Levies 36
Cyber resilience 37
Superannuation 38
Fees 40
Heatmap 42
IOOF case 47
Unlisted assets 48
Climate risk 49
Conclusion 50
Appendix A - Hearing and witnesses 52
Appendix B - Government and APRA responses to Capability Review recommendations 54
Table 2.1. APRA enforcement activity, 2018-2019 22
Table 2.2. Activities undertaken by APRA supervisors across regulated industries 23
Table 2.3. Levy amounts on ADIs 36