APRA will suspend the issuing of new licences due to the “fundamental change in the economic and social environment.”
APRA will not issue any new licences for at least six months as it does not consider it “prudent” to issue new licences at this time.
“Financial institutions, particularly those that take customer deposits, look after superannuation funds or issue insurance, occupy a unique position of trust,” APRA said in a letter to licence applicants.
“The financial safety of these institutions is key to the financial stability and well-being of the community and, as a result, these institutions are subject to higher standards than many sectors of the economy. This includes higher entry standards. The process of granting an APRA licence is intended to help ensure that a new entrant will be able to honour the financial promises it makes under all reasonable circumstances."
APRA will make an exception where it is necessary to carry out its mandate.
More to come.
The FSC has signalled some of the largest global fund managers are seeing excessive red tape in Australia as an issue, as it implores the go...