A new “disqualification register” has been proposed which would name and shame bankers who have failed to live up to prudential standards.
The register was suggested by the Australian Prudential Regulation Authority
(APRA) in a submission to the Senate Standing Committee on Economics in relation to the Banking Executive Accountability Regime (BEAR).
“The proposed legislation establishes a set of expectations for ADIs and accountable persons including acting with honesty and integrity, due skill, care and diligence, and dealing with APRA in an open, constructive and co-operative way,” the regulator wrote.
Those failing to meet these expectations would be disqualified from holding a “role with significant influence” while being disclosed on the disqualification register.
“In exercising the disqualification power, APRA’s actions will be governed by the legislation and will be supplemented by internal requirements for investigating and substantiating any such decision.”
Those affected will be notified in writing before the disqualification decision is made and can make their own personal submission to APRA.
“An individual is also able to request that APRA review its decision and APRA must consider those submissions (and, as a matter of practice, would do so with a new decision-maker).”
Those dissatisfied with any APRA decision will be able to seek a review by the Administrative Appeals Tribunal.
With regards to civil penalties, APRA can apply to the Federal Court to impose a penalty on any ADI breaking its prudential lending requirements.
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