The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have published new information to help banks, insurers and superannuation trustees prepare for the commencement of the Financial Accountability Regime (FAR).
The FAR, which takes effect for banks from 15 March 2024 and one year later for the insurance and superannuation industries, imposes a strengthened responsibility and accountability framework to improve the risk governance cultures of APRA-regulated entities, their directors and most senior executives.
The information package includes the following guidance materials relevant to all industries:
an information paper to assist entities and their accountable persons in understanding and complying with their obligations under the FAR,
an updated accountability statement guide and template to help entities subject to the FAR enhanced notification obligations to prepare accountability statements, and
reporting form instructions to assist entities in reporting FAR breaches to APRA and ASIC.
The information package also includes a consultation that is relevant to insurance and superannuation entities, comprising:
a joint letter introducing the consultation package and outlining steps insurance and superannuation entities should take ahead of the FAR’s commencement on 15 March 2025, and
proposed amendments to the Regulator rules and draft key functions descriptions for insurance and superannuation entities.
The consultation is seeking industry feedback on the proposed list of key functions for the insurance and superannuation industries and the supporting key functions descriptions by 19 April 2024.
The regulators intend to engage further with industry as part of the consultation and implementation process over coming months.
The documents for consultation are available on APRA’s website: Financial Accountability Regime – Regulator rules. The information package’s guidance materials are available on ASIC’s website: Financial Accountability Regime.