On 20 October 2015, the Government committed to provide regulators with clear powers in the event a prudentially regulated financial entity or financial market infrastructure fails as part of its response to the Financial System Inquiry.
This consultation seeks stakeholder views on the exposure draft of Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017 (the draft Bill), which strengthens APRA’s crisis management toolkit in relation to banks and insurers. Draft explanatory materials are provided to assist readers in understanding the draft Bill.
The draft Bill includes amendments to the Banking Act 1959, Insurance Act 1973, Life Insurance Act 1995, Australian Prudential Regulation Authority Act 1998, Payment Systems and Netting Act 1998 and Financial Sector (Business Transfer and Group Restructure) Act 1999.
These amendments enhance APRA’s crisis management powers by providing APRA with:
- clear powers that enable APRA to set requirements on resolution planning and ensure banks and insurers are better prepared for a crisis; and
- an expanded set of crisis resolution powers that equip APRA to act decisively to facilitate the orderly resolution of a distressed bank or insurer.
Treasury received 253 campaign submissions in support of the Citizens Electoral Council campaign for bank separation.