The Financial Accountability Regime is arguably the most significant change to Australia’s financial services regulatory landscape in a generation. It requires banks, insurers and superannuation funds to identify directors and senior executives, detail their specific responsibilities in ‘accountability statements’ and conduct their activities in accordance with broader obligations e.g., ‘integrity’, ‘skill’ and ‘co-operation’ with ASIC and APRA. If they don’t, they can be personally liable, as can the organisation.
Further to Part 1 and Part 2 of our series on Practical pitfalls for FAR implementations – Seven deadly sins, Part 3 and the final part covers “‘Set and forget’ mentality” and “The Chief Risk Officer and Chief People Officer are disconnected”.
The seven deadly sins (continued)
6. ‘Set and forget’ mentality
FAR requires at least some dedicated FTE headcount. If not, and the implementation is done and gathers dust, future directors / executives are at risk. For example, organisations need to manage the shifting of roles and responsibilities across the…
