On 9 October 2025, the Australian Prudential Regulation Authority (APRA) disqualified the former CEO of Xinja Bank (Xinja) and one other director from being or acting as accountable persons of any authorised deposit-taking institution (ADI) under the Financial Accountability Regime (FAR) for failing to comply with their accountability obligations.

The disqualifications follow an extensive investigation by APRA into the impact that “side agreements” between Xinja and some of its investors had on Xinja’s capital position during 2020 and whether APRA was misled in relation to the bank’s capital position.

The disqualifications are interesting as they are the first disqualifications of accountable persons under the FAR regime since its introduction. The Deputy Chair Margaret Cole comments:

“The FAR means greater accountability standards for regulated entities, their directors and senior executives, and tougher consequences for when they are not met. APRA recognises that the actions of directors and senior executives shape the conduct and operating culture of the entities they lead. Where accountable persons fall short, APRA will hold them to account.”