Find out what the new information package contains
The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have released a new information package aimed at assisting banks, insurers, and superannuation trustees in gearing up for the launch of the Financial Accountability Regime (FAR).
Set to come into effect for banks on March 15 2024, and for the insurance and superannuation sectors a year later, the FAR aims to bolster responsibility and accountability among APRA-regulated firms, their directors, and top executives.
The guidance package, relevant across all sectors, comprises an information paper designed to help entities and their accountable persons meet their obligations under the FAR. It also includes an updated guide and template for creating accountability statements, alongside instructions for reporting FAR breaches to both APRA and ASIC.
The information package also features a consultation for insurance and superannuation entities. This includes a joint letter that introduces the consultation and details preparatory steps for these entities ahead of the FAR’s implementation next year. Also part of the consultation are proposed changes to the regulator rules and preliminary descriptions of key functions specific to the insurance and superannuation sectors.
ASIC and APRA have published new information to help banks, insurance and superannuation trustees prepare for the commencement of the FAR. We are also seeking feedback from the insurance and super industries on key functions https://t.co/4wBvKmS2sM pic.twitter.com/QJAErA5Bca
— ASIC Media (@asicmedia) March 14, 2024
Industry stakeholders are invited to provide feedback on the proposed key functions list and the associated descriptions by April 19. ASIC and APRA plan to further engage with the industry throughout the consultation and implementation phases in the forthcoming months.
Last week, APRA and ASIC introduced the final rules and additional guidance for the FAR, which includes a set of regulator rules, detailing the requirements for entries in the FAR register of accountable persons. It also features transitional rules for authorised deposit-taking institutions, guiding them on the information needed for their accountable personnel transitioning from the Banking Executive Accountability Regime (BEAR) to the FAR.
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