Treasury issues Consultation Paper on Review of Prudential Decisions

Following the Treasurer's announcement in April that the Government has decided to introduce a court-based process for decisions to disqualify individuals under APRA‑administered legislation, Treasury has now released a Consultation Paper (pdf).

The Paper specifies APRA decisions where it is proposed to remove ministerial consent, provisions whereit is proposed that a disqualification decision be made by the Court and proposed streamlined directions powers under the Banking Act, Insurance Act and Life Act.

The Government also proposes to specify in the legislation the APRA decisions for which a merits review will be available as well as a limited set of triggers for issuing a direction under the proposed new general directions power, which, if invoked, would exempt the resultant direction from merits review. This approach will provide a greater degree of certainty and clarity with respect to the reviewability of an APRA direction while ensuring APRA is able to act decisively when the interests of depositors, policyholders and beneficiaries, or the stability of the financial system, is at risk.