Lonsdale leads APRA review

A review by APRA of its "enforcement strategy" will be led by APRA deputy chair John Lonsdale, a relatively new face among the regulator's senior ranks.

Lonsdale will be assisted by "an independent advisory panel of experts in the administration of law and regulatory enforcement," APRA said.

The panel comprises former NSW Supreme Court Judge Robert Austin, ACCC Commissioner Sarah Court and Professor Dimity Kingsford Smith, director of the Centre for Law Markets and Regulation, UNSW.

APRA said it established the enforcement review "in recognition both of new regulatory responsibilities under the Banking Executive Accounting Regime [BEAR], as well as case studies examined by the Royal Commission."

It will also give APRA chair Wayne Byres a helpful talking point, assuming he is called at the upcoming hearings of the royal commission.

Lonsdale said the review will examine APRA's current enforcement strategy and infrastructure and how it interacts with APRA's core supervisory approach.

"The review will be a forward-looking examination of APRA's approach to the use of its enforcement powers to ensure that financial promises made by supervised institutions are met within a stable, efficient and competitive financial system.

"It is timely to examine whether APRA's traditional approach - prioritising prevention and rectification - can be augmented by greater enforcement activity. This review presents an opportunity for APRA to strengthen further its supervisory toolkit and reinforce sound prudential outcomes," Lonsdale said.

The final review will be presented to APRA Members by 31 March 2019, APRA said.

APRA expects to release publicly both the final review and APRA's enforcement strategy.