1Short title
This Act may be cited as the Australian Prudential Regulation Authority Act 1998.
Parliamentary material from APH and the Federal Register of Legislation. Links open the official source in a new tab.
Bill homepage (APH)This Act may be cited as the Australian Prudential Regulation Authority Act 1998.
Subject to subsection (2), this Act commences on a day to be fixed by Proclamation.
If this Act does not commence under subsection (1) within the period of 6 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.
In this Act, unless the contrary intention appears:
action that is likely to have a detrimental effect on financial system stability in New Zealand includes an action that prevents or interferes with an outsourcing arrangement.
APRA means the Australian Prudential Regulation Authority.
APRA member means a member of APRA, including the Chair and each Deputy Chair.
APRA Special Account means the Australian Prudential Regulation Authority Special Account established by section 52.
APRA staff member means any of the following:
a person appointed by APRA under section 45; or
a person assisting APRA under section 46; or
a person engaged by APRA under section 47.
ASIC means the Australian Securities and Investments Commission.
ASIC member means a member of ASIC.
ASIC staff member has the same meaning as the expression staff member has in subsection 5(1) of the Australian Securities and Investments Commission Act 2001.
body regulated by APRA has the meaning given by subsection (2).
Chair means the APRA member appointed as Chair of APRA.
Collapsed Insurer Special Account: see subsection 54F(1).
CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.
Deputy Chair means an APRA member appointed as a Deputy Chair of APRA.
Financial Claims Scheme Special Account means the Financial Claims Scheme Special Account established by section 54A.
financial sector supervisory agency means a person or body having the function, in Australia or in a foreign country, of supervising or regulating financial institutions.
New Zealand financial institution means a financial institution, as defined in section 2 of the Reserve Bank of New Zealand Act 1989 of New Zealand, that carries on a business in New Zealand.
officer of the Reserve Bank Service means a person appointed under Part VII of the Reserve Bank Act 1959.
outsourcing arrangement means an arrangement for the business of a New Zealand financial institution, or functions relating to such business, to be carried on by an entity other than the institution.
prescribed New Zealand authority means the following:
the Reserve Bank of New Zealand;
an authority of the government of New Zealand that:
has statutory responsibilities relating to prudential regulation or financial system stability; and
is prescribed by the regulations for the purposes of this definition.
prudential regulation framework law means any of the following:
this Act;
the Banking Act 1959;
the Financial Accountability Regime Act 2023;
the Financial Accountability Regime (Consequential Amendments) Act 2023;
the Financial Institutions Supervisory Levies Collection Act 1998;
the Financial Sector (Collection of Data) Act 2001;
the Financial Sector (Shareholdings) Act 1998;
the Financial Sector (Transfer and Restructure) Act 1999;
the Insurance Act 1973;
the Insurance Acquisitions and Takeovers Act 1991;
the Life Insurance Act 1995;
the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003;
the Private Health Insurance (Prudential Supervision) Act 2015 or the risk equalisation levy legislation (within the meaning of that Act);
the Retirement Savings Accounts Act 1997;
the Superannuation Industry (Supervision) Act 1993;
the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987;
any Act imposing a levy to which the Financial Institutions Supervisory Levies Collection Act 1998 applies, or to which the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987 applies;
another Act that is prescribed for the purposes of the section in which the expression appears.
prudential regulation or advice services means services of either or both of the following kinds:
services consisting of APRA performing a role in the prudential regulation or supervision of entities;
services consisting of APRA providing advice relating to the prudential regulation or supervision of entities.
Reserve Bank means the Reserve Bank of Australia.
virtual enquiry technology means any technology that allows a person to appear at all or part of a hearing, examination or other enquiry without being physically present at the hearing, examination or other enquiry.
Each of the following is a body regulated by APRA:
an ADI, within the meaning of the Banking Act 1959;
an authorised NOHC, within the meaning of the Banking Act 1959;
a general insurer, authorised NOHC or subsidiary of a general insurer or authorised NOHC, within the meaning of the Insurance Act 1973;
Lloyd’s, or a Lloyd’s underwriter, as defined in section 3 of the Insurance Act 1973;
a life company that is registered under section 21 of the Life Insurance Act 1995 or a registered NOHC within the meaning of that Act;
a private health insurer, within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015;
the trustee of a superannuation entity, within the meaning of the Superannuation Industry (Supervision) Act 1993;
an RSA provider, within the meaning of the Retirement Savings Accounts Act 1997.
ADI is short for authorised deposit‑taking institution, NOHC is short for non‑operating holding company and RSA is short for retirement savings account.
The regulations may amend subsection (2) as in force from time to time for the purpose of:
making additions to, or omissions from, the kinds of bodies or entities covered by that subsection; and
changing the descriptions of the kinds of bodies or entities covered by that subsection.
This Act binds the Crown in each of its capacities.
This Act does not make the Crown liable to be prosecuted for an offence.
This Act extends to every external Territory.
The Criminal Code applies to all offences against this Act.
The Australian Prudential Regulation Authority is established by this section.
For the purposes of the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013):
APRA is a listed entity; and
the Chair is the accountable authority of APRA; and
the following persons are officials of APRA:
the Chair;
the other APRA members;
the APRA staff members; and
the purposes of APRA include:
the purposes of APRA referred to in section 8; and
the functions of APRA referred to in section 9.
The main purposes for which APRA exists are as follows:
regulating bodies in the financial sector in accordance with other laws of the Commonwealth that provide for prudential regulation or for retirement income standards;
administering the financial claims schemes provided for in the Banking Act 1959 and the Insurance Act 1973;
developing the administrative practices and procedures to be applied in performing that regulatory role and administration.
In performing and exercising its functions and powers, APRA is to balance the objectives of financial safety and efficiency, competition, contestability and competitive neutrality and, in balancing these objectives, is to promote financial system stability in Australia.
In performing and exercising its functions and powers, APRA must:
support the prescribed New Zealand authorities in meeting their statutory responsibilities relating to prudential regulation and financial system stability in New Zealand; and
to the extent reasonably practicable, avoid any action that is likely to have a detrimental effect on financial system stability in New Zealand.
APRA must balance the requirements of subsection (1) with the requirements specified in section 8.
If:
APRA proposes to take an action; and
APRA has reasonable cause to believe that the action is likely to have a detrimental effect on financial system stability in New Zealand;
APRA must, to the extent that APRA considers reasonably practicable in the circumstances, having regard to urgency or other similar constraint, consult with and consider the advice of each prescribed New Zealand authority APRA considers to be relevant in the circumstances before taking the action.
The performance of a function or the exercise of a power by APRA is not invalid merely because of a failure by APRA to comply with this section.
APRA has the following functions:
the functions conferred on it by or under this Act or any other law of the Commonwealth;
the functions conferred on it by or under any law of a State or Territory in accordance with subsection 9A(1);
the function of providing prudential regulation or advice services under agreements entered into in accordance with subsection 9A(2).
Conferral of functions by or under State or Territory laws
APRA may have functions or powers conferred on it by or under a law of a State or Territory if the conferral of the functions or powers is in accordance with:
provisions of an agreement entered into by the Commonwealth and the State or Territory, being provisions approved by the Minister for the purposes of this subsection; or
an approval given by the Minister for the purposes of this subsection.
APRA has the functions and powers so conferred by that law.
Agreements for performance of prudential regulation or advice services
APRA may, with the approval of the Minister, enter into an agreement with a State, Territory or other person under which APRA is, for a fee, to provide prudential regulation or advice services (whether in Australia or a foreign country). The agreement is only effective for the purposes of this Act to the extent to which APRA’s provision of the services is for a purpose or purposes within the Commonwealth’s legislative power.
Subsection (2) agreement may deal with liabilities between the parties
An agreement entered into in accordance with subsection (2) may make provision in relation to the circumstances in which, and the extent to which, one party to the agreement is liable to the other party to the agreement in respect of matters arising under or out of the agreement.
Delegation of Minister’s power to approve subsection (2) agreement
The Minister may, in writing, delegate the power under subsection (2) to approve the entering into of agreements to an SES employee, or acting SES employee, in the Department.
APRA must advise the Minister as soon as practicable if it considers that a body regulated by APRA is in financial difficulty.
APRA must advise the Minister, if requested by the Minister, and may advise the Minister on its own initiative, respecting:
matters that would improve the financial safety and efficiency, competition, contestability or competitive neutrality of the sectors in which the bodies regulated by APRA operate; or
changes to, or in relation to, any prudential regulation framework law that APRA considers would overcome or assist in overcoming problems APRA has identified in the course of performing or exercising any of its functions and powers.
In addition, APRA must advise the Minister, if requested by the Minister, and may advise the Minister on its own initiative, respecting any of the Minister’s functions and powers.
Showing the first 12 of 72 provisions. See all provisions