APRA Survey Reveals Some Entities Find Regulatory Burden Too High
The Australian Prudential Regulation Authority (APRA) published results of the 2021 stakeholder biennial survey of regulated entities as well as knowledgeable observers, such as auditors, actuaries, and industry associations. APRA undertakes the biennial stakeholder surveys to help assess its performance and effectiveness. The results reveal that the regulatory and supervisory approaches of APRA have positively impacted the banking, insurance, and superannuation industries during COVID-19 crisis. The survey indicates that a quarter of the regulated entities feel that regulatory burden on the entity is too high versus the benefit gained by the entity. Moreover, almost one-third of the respondents believe that APRA collects too much statistical data.
For this seventh stakeholder survey since 2009, APRA had engaged Orima Research, which conducted the survey over six weeks during May 2021 and June 2021. The survey received responses from 297 regulated entities and 31 knowledgeable observers. The survey found that 95% of the regulated entities believe that APRA effectively communicated its changing expectations during the COVID-19 crisis, while 87% agree that the policy responses of APRA were appropriate and helpful to their entity during the pandemic. More than 95% of the entities believe that the APRA supervision helps to protect both their industry and the financial well-being of the Australian community. Among other key findings:
- 95% agree that APRA’s public communications are clear and effective
- 93% agree that APRA is effective in identifying risks across industry
- 87% agree that APRA’s increased focus on risk culture had a positive impact on their entity
Across the first seven editions of the survey, the results have been consistently strong, with small improvements recorded in 2021 (versus 2019) among the regulated entities. General patterns observed in the 2021 results are that the views of regulated entities are equal to or more positive than those of the knowledgeable observers, a pattern that has been observed previously. Among the regulated entities, in 2021, the views of entities that are part of a group are generally broadly in line with the entities that are not part of a group. Most statistically significant changes observed among regulated entities from 2019 to 2021 are upward, whereas statistically significant changes among knowledgeable observers were generally slightly downward.
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Keywords: Asia Pacific, Australia, Banking, Survey Results, Regulated Entities, COVID-19, Stakeholder Survey, Regulatory Burden, Statistical Reporting, APRA
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