It is essential that financial regulators uphold high probity standards, to strengthen the legitimacy and integrity of the regulator and support the objectives of the regulatory scheme.

• APRA is an independent statutory authority established under the Australian Prudential Regulation Authority Act 1998.
• APRA’s purpose is to ensure Australians’ financial interests are protected and the financial system is stable, competitive, and efficient.

This is one of a series of three performance audits which continues the ANAO’s examination of probity management in Commonwealth entities.

The audit provides the Parliament with independent assurance regarding probity management at the Australian Prudential Regulation Authority (APRA).

Key findings:

• Probity management at the Australian Prudential Regulation Authority (APRA) was largely effective.
• With the exception of not having a policy for senior executive remuneration, APRA had arrangements structured to manage the probity risks selected for review, and to promote compliance.
• APRA had a framework and arrangements to monitor, report on and provide assurance on the selected probity requirements.
• APRA fully or largely complied with most of the probity related requirements examined in this audit. There was partial compliance with credit card requirements.

Key recommendations:

• The Auditor-General made two recommendations aimed at: APRA establishing a policy for senior executive remuneration; and improved arrangements for the management of gifts, benefits and hospitality.
• APRA agreed to the recommendations.