Macro Trends, page-154

Hope you guys don't mind me posting frequently. Usually when I read a post where there is some speculation or questions, I just go out and hunt for answers. They may not be direct answers, but I'd rather see what conversations are going on to add truth to the narrative.

I'm not sure if you guys have read this, it's now a 10 day old article. I found this interesting and this will apply to FinTech companies with ADI as well. I'll just grab some bits that stood out to me:

Australia’s Predential Regulation Authority (APRA) has said it’s going to ask the country’s financial firms to declare their annual reports on governance and corporate culture, as part of the regulator’s four-year plan to improve standards in the industry.

Following a report by the Royal Commission which uncovered decades of misconduct, from misselling for big bonuses to charging fees for no service, these new requirements by the regulator will see “deep dive” reviews if firms do not live up to the mark.

In tandem with new regulation, the regulator will also be sharpening up its supervision, using a variety of technology and human-delivered methods to “restore community trust in the financial system as a whole”.
(In my head, I'm connecting this to the Thomson Reuters discussion in the video above).

APRA's chairman Wayne Byres is focused on transforming governance, culture, remuneration and accountability, calling them ‘GCRA’ for short.

APRA says it’s “not aware of any peer regulator who has such an aspirational and wide-ranging plan”.

The regulator wants to strengthen the prudential framework by introducing a maximum cap on the use of financial metrics. “Unsurprisingly, our proposals have not been warmly welcomed,” says Byres, who challenges the industry to come up with an “alternative” that isn’t just “the status quo”.
(What I like about this comment is that the banks are not happy, and all the FinTech companies are welcoming this approach. What we know is that Senator Jane Hume is managing the FinTech players)

Since the Banking Executive Accountability Regime (Bear) was enforced, Byres says APRA has had “a much stronger role in enforcing accountability”. This regime establishes accountability obligations for authorised deposit-taking institutions (ADIs) and their senior executives and directors.
(ISX better get their ADI. Its been ages now)

Byres final message in Sydney was this: “Regulated institutions must lift standards of governance, improve their internal cultures, and embed systems and practices of remuneration and accountability that support the long-term interests of their full range of stakeholders.”

source: https://www.fintechfutures.com/2019/10/banks-culture-and-governance-next-target-for-australian-regulators/