The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) will streamline aspects of the Financial Accountability Regime (FAR) to reduce regulatory burden without lowering accountability standards.
Under the regulators' proposed changes, ASIC and APRA will remove key functions requirements from the FAR regulator rules; raise the materiality threshold for notifying ASIC and APRA of changes in accountability; and no longer require information on accountable persons' direct reports in accountability maps.
ASIC and APRA estimate that the changes will reduce reporting for all accountable entities and the 4500 impacted accountable people. Further, the changes to accountability maps will at least halve the number of updates entities need to make.
APRA will today also commence consultation on removing all reporting requirements under its fit and proper regime (refer to APRA's consultation on governance reforms released today).
ASIC will streamline responsible manager Australian financial services licensing requirements for FAR entities by reducing requirements to submit evidence of competence from October 2026. This change will benefit approximately 2000 current Australian financial services licensees.
ASIC and APRA will consult on the changes and aim to implement them by the end of 2026. ASIC and APRA will also support the Government in its legislative changes to the FAR.
APRA Member Therese McCarthy Hockey said these reforms continue APRA's commitment to reduce regulatory burden.
"The changes announced today get the balance right, allow entities to get on with running their businesses, and reinforce APRA's commitment to proportionality."
ASIC Commissioner Kate O'Rourke said the reforms align with ASIC's multi-year program of regulatory simplification, with a recent report highlighting ASIC's progress in making regulation clearer, more accessible and easier to navigate.
"Through our simplification work, we are focused on reducing regulatory burden while maintaining consumer protections, and that is what these reforms achieve."
The measures are part of ASIC and APRA's contribution to the Government's Better Regulation reforms, announced in the 2026-27 Budget. The reforms propose changes to the FAR legislation, so that entities need only provide accountability statements and maps on request (rather than up front) and have more time to register their accountable persons.
ASIC and APRA's changes announced today also form part of the Council of Financial Regulators' broader package of actions designed to reduce regulatory burden and improve how regulators collect, share and use data.
The Australian Securities and Investments Commission (ASIC) is Australia's integrated corporate, markets, financial services and consumer credit regulator. In administering the FAR, ASIC's role is to focus on impacts to market integrity and consumer protection in the financial and payments systems.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9.8 trillion in assets for Australian depositors, policyholders and superannuation fund members.
