The Australian Prudential Regulation Authority’s (APRA’s) 2013 Stakeholder Survey found by far the lowest scoring item surveyed was ‘Changes to APRA's prudential framework consider the costs of regulation imposed on industry’, which garnered an agreement rate of just 2.6 out of five, where three is neutral, five is strongly agree and one is strongly disagree.
“A sub-theme of the survey results is that the cost and/or burden of regulation is starting to hurt for both small and large entities,” stated Australian Survey Research, the group that produced the report.
“The amount of regulation in terms of use of resources, let alone costs, and its impact on competitiveness is becoming a notable issue. Some are openly questioning the value that a large amount of regulation, or particular regulation, adds to fund members, consumers or shareholders.”
In most areas, the results were broadly similar to the 2011 survey, with the biggest differences seen in areas related to consultation, supervision, harmonisation and risk, the report stated. Just two thirds of respondents in the latest survey said the amount of statistical data collected by APRA was about right, down from 80 per cent in 2011.
Respondents were largely positive towards APRA’s consultation process, with most agreeing the regulator provides sufficient opportunity for consultation and considers relevant issues when developing its standards and guidance.
Respondents were very positive regarding their dealings with APRA staff, with the highest scoring item, ‘APRA staff demonstrate the value of integrity’, scoring 4.5 out of five. Respondents also strongly agreed (4.4 out of five) that APRA staff ‘demonstrate the value of professionalism’.
The survey was completed by almost 300 entities, largely trustees, authorised deposit taking institutions and general insurers, as well life insurers and friendly societies.
