AFCA and APRA sign a memorandum of understanding (MoU)

The Australian Financial Complaints Authority (AFCA) and the Australian Prudential Regulation Authority (APRA) have signed an MoU that sets out the basis for engagement between the two organisations, including information sharing and other forms of cooperation and coordination.  

The MoU has been signed by APRA Chair John Lonsdale and AFCA’s Chief Ombudsman and Chief Executive Officer David Locke. 

Although AFCA and APRA have distinct mandates and responsibilities, they both have a common role in protecting and delivering benefits for all Australians. Supporting a fair and efficient financial system is a key focus of both organisations.  

The authorities recognise the importance of mutual consultation and cooperation in the effective discharge of their respective responsibilities. As per the MoU, both AFCA and APRA will: 

• Inform – proactively provide appropriate information and documents that are relevant to the other authority and respond promptly to information and document requests; 
• Consult – where one authority is considering or undertaking an activity that has an impact on the other authority’s responsibilities; 
• Collaborate – seek input from, or collaboration with, the other authority to achieve or improve regulatory outcomes, particularly in policy development and consultation with industry and statistical collections; and 
• Engage effectively – seek to improve the efficiency of its interaction with the other authority and, in areas of common interest, the efficiency and effectiveness of interaction with industry participants. 

Both organisations acknowledge the benefits of sharing information that will assist each other in performing their functions and exercising their powers. To further this aim, the organisations may share, to the extent possible, information relevant to the financial or prudential soundness of regulated financial institutions, with each other.  

This is subject to any statutory secrecy and non-disclosure obligations, other confidentiality and information-sharing obligations, or any other constraints including, where applicable, privacy legislation obligations. Both organisations agree to adhere to any conditions imposed by the disclosing authority, or any other terms required. 

You can read the full text of the MoU signed between the two organisations at the APRA website.