The Commission’s recommendations to broaden the scope of APRA’s regulatory overview and co-regulation by both the Australian Securities and Investments Commission (ASIC) and APRA were aimed at strengthening accountability, responsibility, and transparency within Australia’s financial services industry.
A significant outcome of the Commission was the Financial Accountability Regime Bill 2023 (FAR), which replaces the Banking Executive Accountability Regime (BEAR) and brings an expanded scope of regulation to other financial services firms, including banking, superannuation, and insurance entities—and associated non-operating holding companies (NOHCs).
The legislation covering the FAR incorporates two pieces of legislation and three legislative instruments. The FAR Act 2023 sets out the far framework, while the minister rules prescribe positions and responsibilities that attract accountability obligations and the regulated entities that are subject to enhanced obligations under the legislation.
Phil Haultain, General Counsel at GRC Solutions and Kelly-Ann McHugh, APAC Director at MyComplianceOffice (MCO), explain the implications of FAR for financial services firms, their related entities, and associated and accountable persons under the new regime.