Former Macquarie Group chief executive Nicholas Moore will chair the Financial Regulator Assessment Authority, which has been set up to conduct regular reviews of the effectiveness and capability of APRA and ASIC.

Moore’s appointment was announced on Friday by Treasurer Josh Frydenberg, who also announced the appointments of lawyer Gina Cass-Gottlieb and former banker Craig Drummond as members.

Cass-Gottlieb is a partner in the competition and regulation practice at Gilbert + Tobin. She sits on the Reserve Bank’s Payments System Board.

Drummond was most recently chief executive of Medibank. He was previously group executive finance and strategy at NAB and country head of Bank of America Merrill Lynch (Australia).

The FRAA was set up following a recommendation of the Hayne royal commission, which called for the creation of a body to assess the effectiveness and capability of the two regulators.

Hayne said that APRA and ASIC already operate within complex accountability frameworks but their effectiveness in delivering on their mandates is not subject to consistent and independent expert review over time.

While both are accountable to the parliament, Hayne said parliamentary committees lacked expertise in assessing the effectiveness of regulators.

The FRAA is an independent statutory authority, with three part-time members and an ex-officio member from Treasury.

The authority will provide the Treasurer with reports every two years, which will be made public. The Treasurer may also request reports “on any matter relating to APRA or ASIC effectiveness and capability” on an ad hoc basis.

The authority will not have the power to direct the regulators to implement any recommendations it makes.

The FRAA legislation also specifies that the new authority will not comment on specific cases of regulatory enforcement actions or decisions. This limitation is designed to safeguard the regulators’ independence.