Australian Prudential Regulation Authority Act 1998
No. 50, 1998
Compilation No. 51
Compilation date: 15 March 2024
Includes amendments: Act No. 68, 2023
Registered: 19 March 2024
About this compilation
This compilation
This is a compilation of the Australian Prudential Regulation Authority Act 1998 that shows the text of the law as amended and in force on 15 March 2024 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1—Preliminary
1 Short title
2 Commencement
3 Definitions
4 Act binds the Crown
5 External Territories
6 Application of Criminal Code
Part 2—Establishment, functions and powers of APRA
7 Establishment of APRA
8 Purpose for establishing APRA
8A Trans‑Tasman cooperation
9 APRA’s functions
9A Conferral of functions by State or Territory laws or by agreements
10 Advice to the Minister
10A Cooperation with other agencies
10B Cooperation with ASIC
11 APRA’s powers
11A APRA’s liabilities are Commonwealth liabilities
12 Directions by Minister respecting APRA policies and priorities
12A Chair not subject to direction by APRA on certain matters
13 APRA is a body corporate
15 Delegation by APRA
Part 3—APRA membership and other corporate matters
Division 1—Membership
16 Appointment of APRA members
17 Restrictions on appointment
18 Appointment of Chair and Deputy Chairs
19 Acting appointments
Division 2—Terms and conditions for APRA members
20 Term of office as an APRA member
21 Term of office as Chair or a Deputy Chair
22 Remuneration and allowances
23 Leave of absence
24 Resignation
25 Termination of appointment
26 Other terms and conditions
Division 3—APRA meetings
27 Times and places of meetings
28 Quorum
29 Who is to preside at meetings
30 Voting at meetings
31
Overview
The Australian Prudential Regulation Authority Act 1998 was enacted to establish the Australian Prudential Regulation Authority (APRA), a body responsible for regulating and supervising financial institutions and markets in Australia. The Act was introduced to address the need for a unified regulatory framework to ensure the stability and efficiency of the financial system, following significant financial sector reforms. The Act was enacted by the Australian Parliament and its primary objective is to provide a comprehensive legal framework for APRA to perform its regulatory functions effectively. The Act outlines APRA's establishment, its functions, powers, and the governance structure, ensuring it operates with the necessary independence and accountability to carry out its duties efficiently.
Scope and Application
The Australian Prudential Regulation Authority Act 1998 (C2004A00310) establishes the Australian Prudential Regulation Authority (APRA), a statutory body responsible for the prudential supervision of the Australian financial services sector. The Act applies to APRA as a body corporate, its members, staff, and the functions they perform. APRA's jurisdiction extends to the regulation of financial institutions, including authorised deposit-taking institutions, insurance companies, superannuation entities, and other entities within the financial sector, as defined under the Act and related legislation. The Act specifies that APRA is to balance the objectives of financial safety, efficiency, competition, contestability, competitive neutrality, and financial system stability in Australia. Furthermore, APRA is tasked with supporting the prescribed New Zealand authorities in meeting their statutory responsibilities relating to prudential regulation and financial system stability in New Zealand, while avoiding actions that could detrimentally affect New Zealand's financial system stability. The Act also delineates the geographic scope of APRA's application, extending it to every external Territory of Australia. Exclusions and thresholds are not explicitly mentioned in the provided text, but the Act's application is subject to amendments through subordinate instruments, which can modify or extend its provisions as necessary.
Key Provisions
- The Australian Prudential Regulation Authority Act 1998 (the Act) establishes the Australian Prudential Regulation Authority (APRA) as a statutory body responsible for prudential regulation of the financial sector. The Act defines APRA's establishment, functions, powers, membership, corporate matters, and other related aspects. Key provisions include APRA's purpose for regulating financial sector bodies, providing administrative practices, and promoting financial system stability in Australia. APRA's functions encompass prudential regulation, administering financial claims schemes, and developing administrative practices. The Act also details APRA's powers, including the ability to acquire property, enter into contracts, and occupy or control land and buildings. APRA's membership comprises a Chair, Deputy Chairs, and other members appointed by the Governor-General, with specific terms and conditions governing their appointments, responsibilities, and potential termination. The Act outlines the appointment and roles of APRA staff members, including permanent, temporary, and casual staff, as well as consultants and other individuals engaged to perform services for APRA. It also addresses the delegation of functions and powers by APRA members and staff. Financial and taxation matters covered in the Act include APRA's share of levy money, charges for APRA's services, and the establishment and purposes of the APRA Special Account, Financial Claims Scheme Special Account, and Collapsed Insurer Special Account. The Act imposes secrecy obligations on APRA members and staff to protect sensitive information related to prudential regulation. It also provides for offences and penalties related to the disclosure of protected information, with specific exemptions and exceptions outlined in the Act. Finally, the Act includes provisions for APRA to give information to the Australian Securities and Investments Commission (ASIC) and to notify ASIC of any reasonable belief of a material breach of ASIC provisions.
- Area of Law
- Financial Regulation
- Administrative Law
- Instrument
- Act
- Concepts
- Regulatory Standards
- Reporting & Disclosure Obligations
- Delegation by APRA
- APRA Values
- APRA Code of Conduct
- Secrecy—general obligations
- Protection from liability
