The AICD lodged a submission to Treasury on proposed reforms to APRA’s crisis management powers.
In this submission, the AICD recognised the importance of APRA having the necessary powers to enable it to perform its functions effectively and expeditiously, including the resolution of regulated entities in distress. However, the AICD also noted that it is essential that these powers be subject to appropriate checks and balances.
The AICD submission focussed on the proposed immunity for directors and other officers when complying with an APRA direction. The AICD strongly supported the proposed introduction of a specific immunity provision for directors. However, the AICD also recommended that the immunity also apply to protect entities which are subject to an APRA direction, and that the proposed qualification of “reasonableness” attached to the immunity be removed. This would ensure directors and officers can act quickly, and with certainty, in implementing a direction from APRA.
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