Purpose
The Financial Regulator Assessment Authority (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 FRAA was set up in response to recommendations 6.13 and 6.14 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Functions
The FRAA is required to report on the effectiveness and capability of ASIC and APRA by 30 June 2028 and once every 5 financial years thereafter. 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.
Considered matters
The legislation establishing the FRAA gives it broad discretion in the performance of its functions. This includes how to perform a particular assessment and the content of a report to the minister. However, the legislation precludes it from directing, making, assessing or commenting on individual enforcement actions, regulatory decisions, complaints and like matters. The minister is also empowered to request that the FRAA consider (and to not consider) certain matters.
Assessments
The first FRAA assessment of ASIC commenced in 2021 and reported to the Minister in July 2022.
The first FRAA assessment of APRA commenced in 2022 and reported to the Minister in June 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.
Legislation
The FRAA was established on 29 June 2021 by the Financial Regulator Assessment Authority Act 2021 (the Act). The Act outlines the functions, responsibilities and obligations of the FRAA, its members, the Secretariat, and the regulators. View the Act on the Federal Register of Legislation.
Secretariat
The FRAA is supported by a Secretariat within the Department of the Treasury.