Former Xinja Bank chair faces APRA ban over undisclosed investor agreements
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The news: The Australian Prudential Regulation Authority has disqualified Xinja Bank’s former chair Lindley Edwards from acting as an accountable person for any authorised deposit-taking institution under the Financial Accountability Regime (FAR) for six years.
Xinja was Australia’s first neobank and collapsed in 2020.
The context: This follows an APRA investigation into the impact of undisclosed “side agreements” in 2020 between Xinja and certain investors, and whether the bank misled the regulator regarding its true capital position in May 2021.
APRA then determined that Edwards failed to comply with multiple obligations under the Banking Executive Accountability Regime, which was superseded by the FAR in March 2024. The regulator noted that these side agreements fundamentally altered the nature of the capital without APRA’s knowledge.
Edwards is the third accountable person of Xinja to be disqualified, following the previous disqualifications of Eric Wilson for eight years and non-executive director Craig Swanger for 10 years in October 2025. However, APRA stated that its decision did not involve allegations or findings of dishonesty or a lack of integrity on Edwards’ part.
What they said: “Ms Edwards inappropriately relied on others and failed to ensure that Xinja was sufficiently capitalised in the months leading to its failure, or that its true capital position was reported to APRA. Her disqualification reflects the seriousness of her conduct,” APRA member Therese McCarthy Hockey said.
The source: APRA media release
