Michael Sukkar (Deakin, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill will create the Financial Regulator Assessment Authority, which will be charged with assessing the effectiveness and capability of APRA and ASIC.

This will fulfil the government's commitment to implement recommendations 6.13 and 6.14 of the financial services royal commission. The royal commission highlighted that, while APRA and ASIC operate within complex accountability frameworks, the regulators' effectiveness in delivering on their mandates is not subject to consistent and independent expert review over time. The FRAA will provide a robust framework for assessing the effectiveness and capability of APRA and ASIC.

The FRAA will consist of three expert part-time members, including the chair, and an additional ex officio member of the Department of the Treasury. The members will be supported by a secretariat located within the Department of the Treasury.

The FRAA will be required to conduct biennial assessments of the effectiveness and capability of APRA and ASIC. In addition to these biennial assessments, the minister may also direct the FRAA to conduct assessments on any matter relating to the effectiveness and capability of the regulators.

To preserve the independence of APRA and ASIC, the FRAA will not be permitted to assess and report on single cases or on individual uses of their legislative powers.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.