APAC Monthly Private Wealth Legal Developments – April 2026

AUSTRALIA

APRA calls for a step-change in managing AI-related risks

APRA has published a letter to industry calling for a step-change in how banks, insurers and superannuation trustees manage and govern AI-related risks.

The letter sets out APRA’s findings from its targeted supervisory review in 2025. The review found that governance, risk management and assurance practices are not keeping pace with the rapid adoption of AI across the sector – and that gap is creating real prudential risk. Key concerns identified are:

• governance lagging adoption: entities are moving from internal experimentation to customer-facing AI applications without appropriately matured governance arrangements. Boards are particularly underprepared, with many lacking the technical literacy to effectively challenge management on AI-related risks and an over-reliance on vendor presentations rather than independent scrutiny;