The long-awaited Financial Accountability Regime Bill 2023 was finally passed by Parliament on 5 September 2023 (FAR). The bill was first introduced into the House of Representatives on 28 October 2021.
FAR will apply to the banking industry 6 months after it receives Royal Asset and 18 months later to the insurance and superannuation sectors:
FAR: The headline points:
- All banks, insurers and superannuation entities: FAR will replace and extend the Banking Executive Accountability Regime (BEAR), which currently only applies to authorised deposit-taking institutions (ADIs). FAR will apply also to general insurers, life insurers, private health insurers, registrable superannuation entities (RSE) licensees as well as indirectly to their ‘significant related entities’ (accountable entities).
- All directors and senior executives: All directors and most senior executives will be identified as accountable persons and be subject to broad obligations to, among other things, act with honesty and integrity and due skill, care and diligence under the regime. They will be obliged to take reasonable steps to prevent material contraventions of specified financial services…
