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Our approach to enforcement and resolution

Information on our risk-based approach to enforcement and resolution.

Our Statement of Prudential Policy sets out our approach to enforcement and resolution.

Statement of Prudential Policy

Enforcement

Where appropriate, we investigate non-compliance and take enforcement action. We take a risk-based approach to ensure our enforcement resources have the most impact. We prioritise the issues that are likely to have a greater bearing on our objectives, a high risk of error, or support our credibility as a regulator and achieve appropriate supervisory outcomes.

Our enforcement framework

Our enforcement framework sets out how we select matters for investigation, conduct investigations, and ultimately take decisions relating to enforcement matters. 

Resolution and crisis management

We do not run a zero-failure regime — we allow regulated entities to fail where the risks to the financial system are understood and can be managed.

Planning for resolution

We:

  • develop policies and procedures for the recovery and resolution of distressed entities — for example — Open Bank Resolution (OBR)
  • plan and coordinate with other organisations with interests in recovery and resolution matters — both domestically and overseas.
  • consider a broad range of issues — including avoiding significant damage to the financial system.

More information about resolution

Our regulatory response model for enforcement and resolution