Regulators Told to Prioritise Growth

Federal Treasurer the Hon Jim Chalmers MP has issued new Statements of Expectations for the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC), placing a greater emphasis on economic growth and productivity.

The clear message is that both bodies should do more to support productivity, unlock investment and help grow the economy, while continuing to preserve financial stability, market integrity and consumer protection.

The Treasurer framed the move as striking a balance between supporting investment, reducing the regulatory burden on business, promoting stability and safeguarding the financial system. The Government expects the regulators to deliver "proportionate, risk-based regulation" that supports growth without compromising their core protective functions.

According to NIBA’s thought leadership report ‘Ready or Reacting? Shaping the Future of the Broking Profession’ brokers identify regulatory demands as one of the top three disruptive forces over the coming decade, with 86% anticipating increased regulation, but only 62% prepared for this change.

The Treasurer noted that while APRA and ASIC play a crucial role in protecting businesses and consumers, they can also help tackle Australia's long-standing productivity challenge. He positioned the statements as part of a broader productivity agenda already underway, including the Council of Financial Regulators' roadmap for more coordinated and efficient regulation of the financial sector.

The direction is consistent with priorities set at last year's Economic Reform Roundtable. According to the Treasurer, boosting productivity, unlocking investment and growing the economy—while preserving financial stability and consumer protections—are high priorities for the Government that will now feature more prominently in the work being done by the regulators.

The new Statements of Expectations are available on Treasury's website.