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Section 2: Outcomes and Outputs Information
Outcomes and Output Groups
The map on the following page shows the relationship between Government outcomes and the contributing outputs for the Australian Prudential Regulation Authority (APRA). Financial detail for Outcome 1 by output appears in Table 2.1 while non-financial information for Outcome 1 appears in Table 2.2.
Changes to Outcomes and Outputs
There have been no changes to APRA's outcomes and outputs during 1999-2000.
Outcome 1
To enhance public confidence in Australia's financial institutions through a framework of prudential regulation which balances financial safety, efficiency, competition, contestability and competitive neutrality
Measures in the 2000-01 Budget
There are no measures for APRA in the 2000-01 Budget.
Outcome 1 - Resourcing
Table 2.1 shows how the 2000-01 appropriations translate to total resourcing for Outcome 1, including Revenue from Government (appropriations), revenue from other sources and the total price of outputs. This table links back to Table 1.1, the Appropriations Table.
Table 2.1: Total Resources for Outcome 1
Outcome 1 - Contribution of Outputs
The outputs of APRA aim to enhance public confidence in Australia's financial institutions through a framework of prudential regulation which balances financial safety and efficiency, competition, contestability and competitive neutrality.
The outputs involve formulation and promulgation of prudential policy and practice to be observed by regulated institutions; effective surveillance and compliance programs and, where relevant, remediation or enforcement measures, to give effect to the laws administered by APRA and to standards issued under those laws; and advice to Government on the development of regulation and legislation affecting regulated institutions and the financial markets in which they operate.
Performance Information for Outcome 1
Table 2.2: Performance Information 2000-01
Performance information for agency outputs
Output Group 1.1 - Australian Prudential Regulation Authority
Output 1.1.1 - Policy development
Issuance of prudential standards, guidelines and like instruments which effectively address risk management exposures of regulated industries;
Comprehensive consultation with industry bodies, regulated institutions and professional associations on the development and implementation of prudential policy;
Effective communication and cooperation with relevant national and international agencies including participation in the international development and harmonisation of prudential regulation policy and practice; and
Promotion of public understanding of the role of APRA and informed debate on issues relating to prudential supervision through the publication of discussion papers, statistics and other relevant information.
Output 1.1.2 - Surveillance programmes
Prevention of financial loss by depositors or policy holders resulting from the failure of regulated institutions to observe laws, regulations or prudential standards administered by APRA;
The identification of emerging prudential risks within regulated institutions through programs of inspection and off-site surveillance and the supervision of remedial actions to effectively manage such risks; and
The exercise by APRA of formal enforcement powers where necessary to protect the interests of depositor, policy holders, superannuation fund members or the public interest generally (including powers to issue directions, disqualify persons from positions of management or trust, transferring engagements, withdrawing licenses, or initiating prosecutions).
Table 2.2: Performance Information 2000-01 (continued)
Performance information for agency outputs
Output Group 1.1 - Australian Prudential Regulation Authority
Output Group 1.1.3 - Financial advice
Regular liaison meetings with the Department of the Treasury and, as requested, with relevant Ministers and Parliamentary Committees;
Recommendations to Government on prudential regulation policy development involving legislative implementation (including amendments to all Acts of Parliament administered by APRA and regulations thereunder);
Timely briefings to Government on major items of policy interest emerging from APRA participation in international forum; and
Maintenance of a memorandum of understanding with the Department of the Treasury.
Evaluations
Feedback will be sought from key clients on a regular basis on the effectiveness of policy and prudential advice.
The performance of surveillance programs is evaluated through industry consultation on a periodic basis.
Competitive Tendering and Contracting
As a new organisation, APRA has been through a number of market testing exercises, which were implemented as considered appropriate. APRA will continue to implement programs that reflect the principles of competitive tendering and contracting.
