Courses trending this month

The Australian Prudential Regulation Authority (APRA) has disqualified the former chair of Xinja Bank Limited (Xinja), Lindley Edwards, from being an accountable person of any authorised deposit-taking institution¹ under the Financial Accountability Regime (FAR).

Ms Edwards is disqualified for a period of six years for failing to comply with her accountability obligations as an accountable person of Xinja during 2020. Ms Edwards is the third accountable person of Xinja that APRA has disqualified. APRA announced its disqualifications of Eric Wilson for eight years and non-executive director Craig Swanger for 10 years on 9 October 2025.² This is now APRA’s third disqualification under the FAR.

The disqualification follows APRA investigating the impact on Xinja’s capital position of undisclosed “side agreements” between Xinja and some of its investors in 2020 and whether Xinja misled APRA about its true capital position. APRA’s investigation began in May 2021 and Ms Edwards’ disqualification has been the subject of review processes.

APRA determined that Ms Edwards failed to comply with several of her obligations as an accountable person under the Banking Executive Accountability Regime, which the FAR superseded for the banking industry in March 2024.

APRA found that Ms Edwards failed to:

• act with due skill, care and diligence when Xinja raised capital that she should have known could not qualify as CET1 capital³ because of the side agreements and did not take steps to ensure that Xinja properly classified and reported the capital, or disclosed the side agreements, to APRA;
• deal with APRA in an open, constructive and cooperative way by not informing, or being satisfied that Xinja had informed, APRA of the existence of the side agreements or of concerns raised at the time within Xinja about the capital; and
• take reasonable steps to prevent matters arising that would adversely affect Xinja’s prudential standing where she did not take steps to put in place adequate procedures within Xinja to ensure Xinja properly classified and reported the capital it raised.

APRA’s decision did not involve allegations or findings of dishonesty or lack of integrity on the part of Ms Edwards.

APRA Member Therese McCarthy Hockey said Ms Edwards’ disqualification is further demonstration that APRA will hold senior individuals to account when they fail to meet their accountability obligations.

“In order to protect depositors and the financial system, it is essential APRA has a complete understanding of the capital position of the banks it supervises and their ongoing capacity to withstand unexpected shocks. It is incumbent on senior individuals to be open and cooperative with APRA so that APRA can effectively assess the risks that a bank and its depositors are exposed to. Board members are in a position of ultimate responsibility for all aspects of governance, oversight and compliance with all relevant laws and Ms Edwards’ conduct fell short of her duties.

“Ms Edwards inappropriately relied on others and failed to ensure that Xinja was sufficiently capitalised in the months leading to its failure, or that its true capital position was reported to APRA. Her disqualification reflects the seriousness of her conduct.”

Background

Between May and August 2020, Xinja entered agreements with three investors by which it purported to raise CET1 capital.  Xinja reported to APRA that the capital it raised from the investors was CET1 capital. However, the capital raisings involved “side agreements” between Xinja and the investors, which APRA was not informed of and which fundamentally altered the nature of the capital, altering its ability to absorb losses and resulted in the capital not qualifying as CET1 capital.

Xinja (now A.C.N. 618 937 054 Limited) is in liquidation after returning its deposits and handing back its ADI licence to APRA in 2021.

Footnotes

¹ Ms Edwards is also disqualified from being or acting as an accountable person of any authorised non-operating holding company (NOHC) of an ADI and any significant related entity of an ADI or NOHC of an ADI.

² APRA disqualifies two directors of Xinja Bank under Financial Accountability Regime | APRA

³ CET1 capital represents the highest quality capital that an ADI must hold and ensures an ADI is able to absorb losses immediately when they occur.

ASIC has outlined key focus areas for its financial reporting, audit and sustainability reporting activities in the 2026-27 financial year, including updates to its surveillance programs.

View the full media release.

The Federal Court has ordered a $33.5 million penalty against online retailer Walker Stores Pty Ltd (in liquidation), which traded as Snaffle, for unlawfully overcharging tens of thousands of consumers under credit contracts.

View the full media release.

The Australian Prudential Regulation Authority (APRA) has released for consultation a new draft licensing framework for locally-incorporated Authorised Deposit-taking Institutions (ADIs).

The consultation package follows APRA’s 2025 discussion paper on improving the licensing framework for ADIs. When finalised later this year, the changes will implement Action 6 of the Council of Financial Regulators’ Review into Small and Medium-sized Banks – that APRA update its ADI licensing framework to make the application process more transparent and efficient.

Written submissions should be sent to Licensing@apra.gov.au by 31 July 2026.

The consultation paper, draft ADI Licensing Criteria, draft ADI Licensing Guidelines, and non-confidential submissions to APRA’s 2025 consultation are available on the APRA website at: APRA consults on more efficient and transparent bank licensing framework

Ashley Arandez of Hoppers Crossing in Victoria has been sentenced to 5 years and 6 months imprisonment in the County Court of Victoria, after pleading guilty to offences involving dishonest conduct, carrying on an unlicensed financial services business, and recklessly dealing with the proceeds of crime.

View the full media release.

ASIC is calling on all licensees and market participants to urgently strengthen their cyber resilience measures, as frontier artificial intelligence (AI) intensifies the global cyber risk environment.

In an open letter to industry ASIC has urged entities to act now and not wait for advanced AI tools to uplift their cyber security fundamentals and ensure their systems can withstand AI-accelerated threats.

View the full media release.

ASIC has permanently banned property developer Trent Simon Giumelli, of Noosa, Queensland, from providing financial services after finding that he demonstrated serious incompetence and irresponsibility, a disregard for the law, and a lack of fairness, professionalism and trustworthiness.

View the full media release.

The Federal Government has announced plans to strengthen the annual superannuation performance test, with a new consultation process aimed at ensuring the framework continues to protect members without unnecessarily constraining long-term investment opportunities.

The review follows concerns raised during last year’s Economic Reform Roundtable that elements of the current performance test may discourage super funds from investing in sectors capable of delivering strong long-term returns and supporting broader economic productivity.

Importantly, the Government stressed the performance test is “here to stay” and that any reforms will not weaken member protections. Instead, the proposed changes are intended to modernise the framework, better align it with the evolving superannuation landscape, and ensure coverage keeps pace with market developments.

Treasury has been working with industry participants and technical experts since 2025 to assess potential reforms, building on earlier public consultation. The latest consultation paper explores targeted options to remove unnecessary investment barriers while maintaining a robust accountability regime for trustees.

The review will also examine whether the performance test should be expanded to cover a broader range of superannuation products, particularly in light of recent market failures including the collapse of Shield and First Guardian.

The Government said the reforms recognise the growing importance of Australia’s $4.5 trillion superannuation sector in supporting capital flows, innovation and economic growth, while continuing to prioritise improved retirement outcomes for members.

Submissions can be made through the Treasury Consultation Hub and close on 19 June 2026.

The Australian Prudential Regulation Authority (APRA), as part of its ongoing regular review of the standards and guidance that form its prudential framework, has temporarily withdrawn its Guidelines on the Recognition of an External Credit Assessment Institution (the Guidelines).

The Guidelines were last updated in 2013. APRA will provide a further update once the review of the Guidelines is complete.

In the meantime, any questions may be directed to: Questions or complaints

Former NSW director, Mark Barnes, who dishonestly obtained $2,478,624 by deception, has been sentenced in the District Court of New South Wales to a term of imprisonment of one year and ten months.

View the full media release.

The Australian Prudential Regulation Authority (APRA) has revised the Frequently Asked Questions (FAQs) for Prudential Standard APS 221 Large Exposures (APS 221) to clarify APRA’s expectations on how exposures to structured vehicles should be calculated and reported using the stored value look through methodology.

It has also removed FAQs that are no longer required and updated references to the prudential standards.

An ADI needs to ensure it reports in accordance with the revised FAQ for ARF 221 by 31 December 2026 at the latest. Whilst the FAQs have been revised to assist industry with complying with APS 221, APRA does not expect resubmission of previous returns reflecting the updated FAQs.

View the updated FAQs at: Large exposures – frequently asked questions

The Australian Prudential Regulation Authority (APRA) has revoked in1Bank Limited’s (in1Bank) authorised deposit-taking institution (ADI) licence under the Banking Act 1959. in1Bank completed its return of deposits process in March, after announcing in January that it intended to exit the banking industry.

An updated list of ADIs can be found on the APRA website at: List of registered authorised deposit-taking institutions.