The FRAA is tasked with assessing and reporting on the effectiveness and capability of the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA). The FRAA’s reports will complement and enhance ASIC and APRA’s existing external accountability mechanisms.
The Authority may also, at the request of the Minister, report on any matter relating to the effectiveness and capability of ASIC and APRA.
The Financial Regulator Assessment Authority was established in response to recommendations 6.13 and 6.14 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
The FRAA is required to report on the effectiveness and capability of ASIC and APRA every two years. Reports will be provided to the relevant Government Minister and tabled in Parliament.
The Authority can also prepare ad-hoc reports on matters related to ASIC and APRA’s effectiveness and capability at the request of the Minister.
The legislation establishing the FRAA precludes it from directing, making, assessing or commenting on individual enforcement actions, regulatory decisions, complaints and like matters.
As such, the FRAA assesses the overall effectiveness and capability of ASIC or APRA, and not relate to individual cases or decisions.
The first FRAA assessment of ASIC commenced in 2021, with a report to be delivered to the Minister in the third quarter of 2022.
The FRAA assessment of APRA will commence in 2022 and be a report will be provided to the Minister in 2023.
In the 2023‑24 Budget the government announced its intention to reduce the frequency of the FRAA review cycle from a biennial basis to a five yearly cycle. Amendments to the FRAA Act that reflect this revised frequency are expected to be introduced to Parliament later in 2023.
Complaints against ASIC or APRA
The FRAA does not have a direct role in assessing complaints against financial firms or against APRA and ASIC. If you have a complaint about ASIC, APRA or your financial services, there are several avenues available.
The FRAA was established on 29 June 2021 by the Financial Regulator Assessment Authority Act 2021, which outlines the functions, responsibilities, and obligations of the FRAA, its Members, the Secretariat, and the regulators. The FRAA Act and explanatory memorandum can be found on the Australian Parliamentary website.
The FRAA is supported by a Secretariat within the Department of the Treasury.