APRA, ASIC, RBA and the ACCC: Who Regulates What
ADS Team
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August 16, 2026
2 months ago
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In short: Four bodies shape Australian lending. The RBA sets the cash rate. APRA regulates bank safety and sets the lending rules that limit what you can borrow. ASIC enforces conduct and consumer protection. The ACCC handles competition. When something goes wrong for a borrower, the practical first stop is usually AFCA rather than any of them.
Key takeaways
- APRA sets the serviceability buffer and DTI limits that cap your borrowing.
- ASIC enforces responsible lending and advertising standards.
- The RBA sets monetary policy but does not regulate individual lenders.
- AFCA - not a regulator - is where individual disputes actually get resolved.
Who does what
| Body | Responsibility | Affects you through |
|---|---|---|
| RBA | Monetary policy, financial stability | The cash rate |
| APRA | Prudential regulation of banks and insurers | Serviceability buffer, DTI caps, capital rules |
| ASIC | Conduct, licensing, consumer protection | Responsible lending, advertising, broker duties |
| ACCC | Competition and consumer law | Market inquiries, misleading conduct |
| AFCA | External dispute resolution | Your individual complaint |
The two that shape your loan
APRA is why you are assessed at roughly 3 percentage points above your actual rate, and why lending above a debt-to-income ratio of 6 is limited to 20% of a lender's new lending. Neither rule is your lender's choice.
ASIC is why lenders must make reasonable enquiries into your circumstances, why brokers owe you a best interests duty, and why comparison rates must appear alongside advertised rates.
Where to take a problem
- The lender's internal dispute resolution first - they must have one and respond within set timeframes.
- AFCA if unresolved. Free, and its determinations bind the lender.
- ASIC for misconduct reports - it does not resolve individual disputes but does act on patterns.
Frequently asked questions
Can I complain to APRA about my bank?
APRA does not handle individual disputes - it regulates institutional safety. Individual complaints go to the lender, then AFCA.
Does AFCA cost anything?
It is free for consumers and small businesses. The lender pays a fee for each complaint handled, which is itself an incentive to resolve matters internally.
Who regulates mortgage brokers?
ASIC, through credit licensing and the best interests duty, which requires a broker to act in your interests rather than their own.
Related reading
- APRA's DTI Cap Explained: The 20% Rule That Started February 2026
- Why Banks Do Not Always Pass On the Full Rate Move
- Where Banks Actually Get the Money They Lend You
Sources
- About APRA — APRA
- Regulatory Guide 273: Mortgage brokers - best interests duty — ASIC
- How AFCA works — Australian Financial Complaints Authority
Information current as at 2 September 2026.
General advice warning: This article contains general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit or financial advice. Consider whether it is appropriate for you and seek advice from a licensed credit representative before acting.
Any interest rate shown is an example only and is not an offer of credit. Where a rate is quoted, the applicable comparison rate is available from the relevant lender and should be considered alongside it.
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