The draft legislation obliges the two financial regulators to share information to the maximum extent practicable and notify the other whenever it forms the belief that a breach of the law for which the other regulator has enforcement responsibility has occurred.
“These new provisions will enable the regulators to support each other in discharging their regulatory functions effectively, and ensure that there are no unnecessary barriers to their sharing information,” Treasurer Josh Frydenberg said.
“These obligations are supplemented by the release of the updated Memorandum of Understanding between APRA and ASIC, which implements Recommendation 6.10 of the Hayne royal commission.”
The exposure draft legislation will also implement recommendation 6.11 by making amendments to formalise the meeting procedures which apply to ASIC, bringing them in line with those that apply to APRA.
“The government is taking action on all 76 recommendations contained in the final report of the royal commission. Restoring trust in Australia’s financial system is part of the Morrison government’s plan for a stronger economy,” Mr Frydenberg said.