Constructively tough? Neither side has committed to fully adopting perhaps the most important recommendation of the banking royal commission

by Dr. Andrew D. Schmulow

The Conversation, (2019), published electronically.

Among the many recommendations of the banking Royal Commission was a Board of Oversight for the two regulators in charge of financial institutions; the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority: ASIC and APRA.

Since then APRA’s own internal review conducted by deputy chairman John Lonsdale and NSW Supreme Court Judge Robert Austin, Australian Competition and Consumer Commission commissioner Sarah Court and UNSW professor Dimity Kingsford-Smith has found APRA to be soft on enforcement and timid by comparison to its international peers.

Nonetheless, and to demonstrate that APRA still doesn’t get what it doesn’t get, its chairman used Tuesday’s release of the review to announce a new mantra. From now on, APRA is to be: “constructively tough”.