The Financial Regulator Assessment Authority has handed down a report into the effectiveness and capability of the Australian Prudential Regulation Authority.

It found the prudential regulator plays a key role in ensuring Australia has a safe and stable financial system. But it also made five recommendations for APRA to improve its resolution function. The recommendations included increasing its efforts to identify and understand risks in superannuation, enhancing its staffing and data and technology capabilities, improving transparency and timeliness in its communications, and developing APRA’s resolution capability in superannuation.

In a statement, APRA said it would act on the findings. Minister for Financial Services Stephen Jones welcomed the report.