Bankers’ integrity to be checked

Under the new Financial Sector Legislation Amendment Bill, to be introduced into Parliament today, the executives and directors of Australian banks will face integrity tests, aimed at safeguarding consumers, before they can take up their jobs. The laws will also allow APRA to remove auditors who do not perform to an approved level.

Insurance companies will also be subject to the new laws, being required to notify APRA of any developments which would negatively affect their financial position, so that the regulator can move more quickly if an insurer gets into trouble. Insurance executives will also face a test of their integrity when the General Insurance Reform Act is introduced from next month.