New APRA and ASIC expectations strengthen support for proportionate regulation

17 July 2026

The Federal Government has released new Statements of Expectations for the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC), placing greater emphasis on productivity, growth, competition and proportionate regulation across Australia’s financial system. For co-operatives and mutuals, the changes are significant.

The new APRA Statement of Expectations explicitly directs the regulator to maintain a proportionate banking regulatory framework while minimising regulatory burden on smaller banks. It also reinforces the importance of proportionate regulation, considering different business models and demonstrating regulatory flexibility when engaging with different sectors and institutions.

The new ASIC Statement of Expectations similarly emphasises the impact of regulation on small businesses and market entrants and highlights the role of competition, growth and economic dynamism in delivering better outcomes for consumers and businesses.

Together, these changes represent a stronger policy signal that business model diversity matters and that regulation should be applied in ways that support competition, innovation and productivity while preserving financial stability and consumer protection.

For many years, the Business Council of Co-operatives and Mutuals (BCCM) and the wider co-operative and mutual sector have advocated for regulatory settings that recognise the distinct characteristics of member-owned businesses. Co-operatives and mutuals operate under different ownership structures, governance arrangements and business objectives from investor-owned firms, and regulation should reflect those differences where appropriate.

The BCCM welcomes the stronger emphasis on proportionality, flexibility and recognition of different business models in the new statements. We see these developments as the result of sustained advocacy by the BCCM, customer-owned banking leaders and the broader co-operative and mutual sector.

Importantly, these statements do more than recognise existing principles. From the BCCM’s perspective, they strengthen the foundation for future advocacy on regulatory proportionality, competition and business model diversity. The clearer references to smaller banks, different business models and regulatory flexibility provide a stronger basis for engagement with regulators and policymakers as future reforms are considered.

The BCCM will continue working with members, regulators and government to ensure these principles are translated into practical outcomes that support co-operatives and mutuals to compete, grow and continue delivering value to members and communities.