APRA defends former chair and deputy chair board gigs

The Australian Prudential Regulation Authority (APRA) has defended its procedures covering former executives and members who leave and then join organisations it regulates.

APRA has defended its procedures in circumstances where its former chair, Wayne Byers now sits on the board of Macquarie Bank and its former deputy chair, Helen Rowell, now sits on the board of the Australian Retirement Trust.

The regulator has mounted its defence in answer to questions posed by NSW Labor Senator, Tony Sheldon who pressed APRA to explain whether the presence of Byers and Rowell on the Macquarie and ART boards was problematic given their detailed knowledge of the workings of the regulator.

APRA’s detailed answer to Senator Sheldon makes clear that while the regulator has a policy position that former members should not take up a directorship of a regulated within 12 months, this is not backed by statute.

“There is no statutory or contractual restraint that prohibits former APRA Members from becoming employees or directors of APRA-regulated entities after they cease their role with APRA,” the regulator told Sheldon. “In addition, there is no legal basis for statutory appointees to have a notice period.”

“This is consistent with other statutory appointees across the Commonwealth. Should APRA become aware of a former Member’s intention to take up a directorship of an APRA regulated entity within 12 months after their departure, the APRA Chair or delegated Member would typically write to both the former Member and the Chair of the entity highlighting the former Members’ ongoing secrecy obligations under the APRA Act and importance of management of any perceived conflicts should any arise. The convention referred to seeks that an outgoing Member:

• not accept paid or unpaid work outside APRA, including directorships and board memberships, in any APRA-regulated entity until at least 12 months after their departure;
• avoid, for at least 12 months after their departure, any commercial relationships that may constitute an actual, potential, or perceived conflict of interest with their position as a former APRA Member; and
• continue to maintain, in their post-APRA career, the same high standard of professional and ethical behaviour they have displayed at APRA, including by not disclosing any confidential information obtained in their capacity as a member of APRA’s Executive Board.

“Since December 2014, four members have departed APRA. APRA does not keep records regarding the future employment of former Members,” the response said.

“With respect to Mr Byres, when he announced that he would be stepping down from the APRA Board, he indicated only that he intended to take a period of absence before exploring other employment opportunities, not what those opportunities could or would be. He was not appointed to the board of an APRA-regulated entity until 15 months after he ceased to be an APRA Member.”

“With respect to Mrs Rowell, her appointment ended on 30 June 2023. She subsequently took up a position on the board of an APRA-regulated entity on 1 October 2023.”