Which authority is responsible for regulating the financial services industry in Australia?

The Australian Prudential Regulation Authority (APRA) is the authority responsible for regulating the financial services industry in Australia. Its primary role is to oversee institutions such as banks, credit unions, insurance companies, and superannuation funds to ensure that they operate in a manner that is safe and sound and that protects the interests of depositors, policyholders, and members of superannuation funds.

APRA’s objectives include promoting financial stability and ensuring that the financial system is resilient and can withstand economic pressures. This involves setting prudential standards and monitoring compliance to safeguard the financial system's integrity. By focusing on the overall stability of the financial sector, APRA plays a critical role in maintaining public confidence in financial services.

While other authorities like the Australian Securities and Investments Commission (ASIC) oversee corporate conduct and the financial market's integrity, and the Reserve Bank of Australia (RBA) manages monetary policy and payment systems, APRA is specifically tasked with the prudential regulation of financial institutions, which makes it the correct choice in this context.