Recommendation 1.17 of the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry recommended that APRA determine an end-to-end product responsibility for each ADI subject to the BEAR with the aim of improving customer experience and outcomes.
In response, APRA has released a letter to ADIs detailing how it intends to achieve heightened and clarified product accountability among senior executives. Specifically, APRA proposes requiring ADIs to identify and register an accountable person to hold end-to-end product responsibility for each product the ADI offers to its customers, including retail, business and institutional customers.
The letter requests feedback on four key considerations relating to implementing the proposed product responsibility requirements: the scope of accountability; product coverage; the structure of the legal mechanism; and the application of joint accountability within ADIs and ADI groups.
Although the requirements are directly applied to locally incorporated ADIs, APRA strongly encourages all ADIs to consider elements of strengthened product accountability as they relate to their accountable persons, and accountability statements and map.
Given the Government announcement that the BEAR will be extended to insurers and Registrable Superannuation Entity licensees, all APRA-regulated entities may have an interest in providing feedback on the proposed approach.
