The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have published an information package to support the financial services industry in implementing the Financial Accountability Regime (FAR).
The FAR imposes a strengthened responsibility and accountability framework for APRA-regulated entities in the banking, insurance and superannuation industries and their directors as well as their most senior executives. In doing so, the FAR aims to improve the risk and governance cultures of those financial institutions.
Implementing the FAR fulfils recommendations made by the financial services Royal Commission that provisions modelled on the Banking Executive Accountability Regime (BEAR) be extended to all APRA-regulated entities.
The FAR replaces the BEAR, which came into effect on 1 July 2018 and was solely administered by APRA. In addition to authorised deposit-taking institutions (ADIs), the FAR will apply to insurance companies, superannuation trustees and licensed non-operating holding companies (NOHCs). Additionally, the FAR introduces conduct-focused prescribed responsibilities, and will be jointly administered by APRA and ASIC.
The FAR will come into force for the banking industry on 15 March 2024 and for the superannuation and insurance industries on 15 March 2025.
View ASIC Website