Hundreds ask for relief from APRA fees, annual report reveals

APRA’s annual report has revealed hundreds of regulated entities asked for relief from fees amid concern of growing costs.

Hundreds have asked for relief from APRA fees. Picture: AAP

Hundreds of companies asked the prudential regulator for relief from their annual fees as the Covid pandemic rocked the nation’s financial sector.

The Australian Prudential Regulatory Authority revealed in its regulatory performance framework report that it had received 266 applications for regulatory relief from financial institutions related to COVID-19 before the end of the financial year.

APRA said as of October it had granted 232 of the 257 applications that had been assessed relief from their annual fees. But 25 were declined.

APRA noted dive have been withdrawn and four remained under consideration.

Regulated entities must pay APRA levy each year, which varies depending on industry and the size of the company but can often run into the millions of dollars.

The financial industry, which was invited to respond to APRA’s annual peformance largely agreed with the regulator’s assessment that it met all six measures, except on one point: regulatory costs.

Only 31 per cent of stakeholders said changes to APRA’s regulatory regimes sufficiently considered growing costs.

Of the remaining 69 per cent, 32 per cent disagreed or strongly disagreed that growing costs were considered.

“Some industry associations expressed concerned about the increasing cost of regulation and encouraged the resumption of planned work to improve transparency on the assessment of costs (and benefits) of proposed policy changes identified as an opportunity for improvement by APRA,” the report noted.

But the report also noted industry associations largely agreed with APRA’s approach during the pandemic, including putting on hold many planned visits for six months, and efforts to reduce the regulatory burden.

APRA said it met more than 100 public and private organisations across the 2020 financial year, responding to more than 8000 inquiries from the companies it regulates.

“Industry associations agreed with APRA’s assessment ...that APRA has maintained open and transparent dealing with regulated entities and good engagement and communication with APRA personnel,” the report said.

“One association highlighted a specific example being the extent to which APRA explained the reasons why regulatory relief would not be granted including meetings with the association and affected members, as well as following up with formal written advice.”