APRA commences next phase of push to strengthen and streamline governance requirements

On 16 June 2026, the Australian Prudential Regulation Authority (APRA) issued a consultation paper setting out updated requirements designed to strengthen and streamline governance requirements for regulated entities. The proposed changes aim to improve the effectiveness of boards and senior management in overseeing risk, strategy, and compliance, as well as enhance the independence and expertise of non-executive directors. APRA's consultation paper outlines key reforms, including the introduction of a new 'risk culture' framework, which will require entities to assess and manage their risk culture, and the implementation of enhanced disclosure requirements for remuneration practices. The regulator has invited industry feedback on the proposed reforms, which are expected to come into effect in 2028. The updates are part of APRA's ongoing efforts to enhance the resilience of Australia's financial system and promote a culture of robust risk management, governance, and accountability within the sector.