Is Your Responsible Persons Fit and Proper Process Fit for Purpose? What the Australian Prudential Regulation Authority (APRA) Governance Review Means for Financial Services Organisations
APRA's draft governance standards are expected to be released for formal consultation this quarter. Since proposing eight reforms to its prudential governance framework in March 2025, APRA has engaged extensively with industry — 57 meetings and roundtables involving more than 150 stakeholder organisations, and almost 80 written submissions. In October 2025, APRA published a governance review update confirming it would proceed with the reforms, with targeted revisions to three proposals but no change to its core concerns around fitness and propriety. Draft standards and guidance are now due in Q2 2026, with the final framework targeted for commencement in 2028. For entities whose fit and proper processes still rely on self-assessments and light-touch checks, there is a narrowing window to review and strengthen those processes before the new standards define the minimum.
17 April 2026