Former Macquarie Group CEO Nicholas Moore has been appointed chair of the Financial Regulator Assessment Authority (FRAA).
Mr Moore’s appointment was announced by Treasurer Josh Frydenberg on Friday, alongside the appointments to the FRAA board of Gina Cass-Gottlieb, partner at the Competition and Regulation Group of Australian law firm Gilbert + Tobin, and the CEO of Medibank, Craig Drummond.
The FRAA was established in response to recommendations 6.13 and 6.14 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, and is tasked with reviewing and reporting on the effectiveness and capability of ASIC and APRA.
“Together, the inaugural members have an in-depth understanding of Australia’s regulatory framework and first-hand experience working with ASIC and APRA over many years,” Treasurer Frydenberg said.
“They also have strong organisational experience which will assist in their assessment of the operational performance of both ASIC and APRA.”
Treasurer Frydenberg announced the creation of the FRAA in April as he revealed outgoing ASIC chair James Shipton was to be replaced with current Herbert Smith Freehills senior adviser Joe Longo, with the authority to take a key role in advising Mr Longo as to what changes are needed to be made at the regulator.
The Treasurer confirmed on Friday that in its first year, the FRAA will assess the effectiveness and capability of ASIC to assist recently appointed Mr Longo in ensuring ASIC is operating effectively and consistently with the government’s Statement of Expectations.
“In establishing the FRAA, the Morrison government is ensuring that Australia’s financial regulators will continue to be strong and effective, maintaining the community’s trust and confidence in the financial system,” Mr Frydenberg concluded.
It was earlier confirmed that the FRAA will not have the power to make comment on individual enforcement actions taken by the regulators “so that operational independence is not unreasonably impacted”, nor will it be able to direct regulators to implement any of the recommendations made.
