APRA and AFCA commit to working together

The Australian Prudential Regulation Authority (APRA) and the Australian Financial Complaints Authority (AFCA) have committed to working together and released a memorandum of understanding (MoU).

The MoU sets out the basis of engagement between APRA and AFCA to support a fair and efficient financial system, including information sharing and other forms of cooperation and coordination.

“The arrangements in this MoU will be implemented in accordance with relevant requirements under each authority's governing legislation or documentation,” the MoU stated.

Agreement to engage

According to the MoU, APRA and AFCA agreed to:

• recognise the importance of mutual consultation and cooperation in the effective discharge of their respective responsibilities; and
• commit to developing and maintaining effective arrangements for engagement and, in accordance with legislative and contractual obligations and agreed protocols, having regard to each other's mandate and broader regulatory objectives.

The MoU stated that each authority agreed to:

• provide appropriate information and documents relevant to the other authority and respond promptly to information and document requests;
• consult when one authority considers or undertakes an activity that has an impact on the other authority's responsibilities;
• seek input from, or collaboration with, the other authority to achieve or improve regulatory outcomes, particularly in policy development and consultation with the industry and statistical collections; and
• improve the efficiency of its interaction with the other authority and the efficiency and effectiveness of its interaction with industry participants.

Taking a proactive approach to engagement also includes senior-level liaison meetings and mechanisms to share perspectives and expertise on relevant issues.

The MoU has been signed by APRA chair John Lonsdale and the recently reappointed AFCA chief ombudsman and CEO David Locke.