Compliance Training for Banking and Finance Professionals

The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have finalised changes to simplify reporting under the Financial Accountability Regime (FAR).

The changes follow strong industry support for reducing unnecessary administration. Following consultation, the regulators have finalised the removal of:

• the requirement to report key functions for the FAR register; and
• the need for accountability maps to identify who reports directly to an accountable person.

Together, these changes provide meaningful relief to regulated entities, with APRA and ASIC estimating they will reduce reporting requirements for all accountable entities and approximately 4,500 accountable people, while halving the number of updates to accountability maps.

The changes will take effect from today. The accountability obligations of FAR-regulated entities and accountable persons will remain unchanged.

ASIC Commissioner Kate O’Rourke said the feedback reinforced the benefits of simplifying FAR administration.

“Industry strongly supported these changes, which will reduce unnecessary reporting while maintaining clear accountability,” Ms O’Rourke said.

“We are proceeding with the reforms as proposed, delivering on our commitment to simpler regulation and making it easier for industry to meet its obligations.”

APRA Deputy Chair Therese McCarthy Hockey said the reforms formed part of APRA’s broader body of work to reduce regulatory burden while continuing to receive the information it needs, ensuring APRA’s regulation strikes the right balance.

“These straightforward reforms cut unnecessary reporting, freeing entities to focus on their work,” Ms McCarthy Hockey said.

Some submissions also called for broader changes, including clearer thresholds for notifying APRA and ASIC of changes in accountability. These changes fall outside the current reforms but may inform future regulatory or legislative changes.

The reforms complement other work to streamline requirements:

• APRA has recently consulted on removal of reporting requirements under its fit and proper regime to remove duplication with FAR reporting.
• ASIC has reduced requirements for Australian financial services licensees to submit evidence of competence for their responsible managers who are also accountable persons. These changes took effect in October 2026 and will benefit approximately 2,000 existing licensees.

Entities should review the final guidance and update their reporting processes to reflect these changes. The final documents can be found at Streamlining FAR administration.

Related Links

• Consultation letter: Consultation on streamlining FAR administration.

RG 279 Financial Accountability Regime: Information for accountable entities

Companies planning to list on Australia’s public markets will have greater flexibility to publicise and correct information about upcoming initial public offerings before lodging a prospectus under changes implemented today by ASIC.

View the full media release.

ASIC has published a new report and data examining the small business restructuring (SBR) process and outcomes across the first five years of the regime’s operation. Report 847 Review of small business restructuring process: 2021–26 (REP 847 examined 6,606 appointments that commenced during the period 1 January 2021 to 30 June 2026).

View the full media release.

Australians could be earning less interest on their savings than they expect, with ASIC urging consumers to check they are receiving the rate they have been promised by their bank.

View the full media release.

Macquarie Bank Limited has admitted failures in the way it promoted its Welcome Rate offer for new savings account customers.

View the full media release.

The Australian Prudential Regulation Authority (APRA) has finalised a simpler, faster and more transparent licensing framework for domestic banks, providing greater clarity for applicants while maintaining APRA’s robust prudential standards.

APRA is responsible for licensing banks, credit unions and building societies – collectively known as authorised deposit-taking institutions (ADIs).

Its updated licensing framework:

• clarifies expectations by replacing APRA’s guidance-based licensing expectations with a clearer, more transparent set of legally effective criteria;
• enables faster and more predictable decisions by simplifying the licensing assessment process and setting clear timeframes for applicants and APRA; and
• delivers greater transparency by clarifying licensing procedures and improving the visibility of APRA’s decisions.

While all applicants must demonstrate they meet the minimum licensing criteria, APRA is committed to taking a proportionate approach to licensing assessments. Smaller and less complex applicants will not be expected to demonstrate the same level of sophistication as larger and more complex applicants.

Clearer timeframes provide applicants with greater certainty about the licensing process and increase APRA’s accountability for timely decision-making. Applicants will have up to 12 months to meet the minimum criteria. Once APRA determines that an application is substantially complete, it will make a licensing decision within 90 days.

The new framework simplifies APRA’s approach by moving from two licensing pathways to a single pathway. As part of this change, APRA will discontinue the Restricted ADI (RADI) licensing pathway, introduced in 2018. Experience with the RADI pathway showed it did not operate as simply or effectively as intended, resulting in limited uptake.

APRA Deputy Chair Therese McCarthy Hockey said the new framework strikes the right balance between supporting competition while upholding robust prudential standards.

“Although APRA’s primary mandate is one of financial safety and stability, we also recognise the important role that strong competition plays in boosting innovation, productivity and standards of customer service.

“We expect the new licensing framework to reduce unnecessary burden and resource costs for applicants. The framework also delivers on APRA’s commitment as part of the Council of Financial Regulators’ Review into Small and Medium-sized Banks to make its bank licensing process more transparent and efficient.”

The updated framework was developed over two rounds of consultation with industry and takes effect immediately.

A letter to industry formally responding to submissions on the framework is available at: Licensing for authorised deposit-taking institutions.

ASIC has announced the formation of the Markets Expert Advisory Group, bringing together market leaders and experts to help identify and prioritise practical improvements to the resilience, efficiency, accessibility and competitiveness of Australia’s capital markets.

View the full media release.

The Federal Court has ordered small amount lender Sunshine Loans Pty Ltd to pay $5.5 million in civil penalties for charging an illegal fee to thousands of consumers that was prohibited under the National Credit Code.

View the full media release.

The Australian Prudential Regulation Authority (APRA) has published remarks delivered today by Deputy Chair David Bradbury to the 2026 ACTU Superannuation Forum in Melbourne.

In “Safeguarding super in a time of challenge”, Mr Bradbury discussed the growing challenges facing Australia’s superannuation system and the need for trustees to strengthen their governance, resilience and capabilities to protect members’ interests in an increasingly complex environment.

His remarks included:

• “The financial consequences of a major cyber incident, prolonged operational disruption or governance failure could far outweigh the cost of the controls designed to prevent it.”
• “Governance is not an end in itself. Good governance is ultimately about ensuring that boards have the capabilities, judgement, diversity of perspective and capacity for challenge needed to navigate an increasingly demanding environment.”
• “Our shared responsibility is to ensure the system remains worthy of the trust Australians have placed in it.”

The full speech is available at: APRA Deputy Chair David Brabury’s remarks to the 2026 ACTU Superannuation Forum, “Safeguarding super in a time of challenge”.

The Australian Prudential Regulation Authority (APRA) has published remarks delivered this morning by Member Suzanne Smith to the 2026 Insurance Council of Australia conference in Sydney.

In “Insurer of the future: Technology creates opportunity. Institutional strength delivers.”, Ms Smith discussed how technology and AI are reshaping the insurance industry and why strong governance, resilience and institutional capability will be critical to insurers’ future success.

Her remarks included:

• “Institutional strength, not technology alone, will set leading insurers apart.”
• “Don’t treat technology, resilience and customer outcomes as separate agendas. Ask whether your investment in each is strengthening the others.”
• “Technology will change how insurers understand, price and manage risk. Institutional strength will determine whether that change builds trust, creates lasting value and helps insurers keep their promises to policyholders when it matters most.”

The full speech is available at: APRA Member Suzanne Smith’s remarks to the 2026 ICA conference, “Insurer of the future”.

The Australian Prudential Regulation Authority (APRA) will oversee a comprehensive assessment of how Macquarie Group Limited (MGL) determines the required capital for its non-bank businesses after identifying a breach of the group’s Non-Operating Holding Company (NOHC) authority.

APRA identified that MGL had miscalculated the amount of capital required to support risks within the non-bank during a recent capital review. The breach, which dates back to 2019, resulted in lower required capital for the non-bank, however the overall financial stability of the group, including the bank, was not undermined at any point.

MGL has since addressed the understatement of its required capital, and a $100m governance overlay has been put in place. APRA will oversee a full assessment of the approach used by Macquarie to determine the required capital for its non-bank business (Economic Capital Model). Subject to the assessment findings, APRA may consider further action.

The $100m overlay is in addition to an existing $500m capital overlay that APRA applied to Macquarie Bank Limited in 2021. Removal of these overlays is subject to APRA approval.

APRA Deputy Chair Therese McCarthy Hockey said the breach reflected a serious failure in Macquarie Group’s governance and assurance processes.

“Macquarie is one of the country’s largest financial groups and, as such, APRA expects it to have among the highest standards of governance, risk management and controls. Macquarie failed to identify and address this issue through its own governance and assurance processes, which falls short of APRA’s expectations.

“While APRA acknowledges Macquarie’s cooperation, addressing the breach after identification does not diminish the seriousness of the underlying failure. Board and senior executives are responsible for ensuring their institutions maintain effective risk management, assurance and governance practices that support compliance, not simply react when deficiencies are identified.

“As previously flagged, APRA will be reviewing all existing NOHC authorisations to ensure they appropriately address the risks arising from group structure and activities,” Ms McCarthy Hockey said.