The Morrison Government has today released a Proposals Paper on extending the Banking Executive Accountability Regime (BEAR) to all APRA regulated entities and to make ASIC a joint administrator of the regime.
This is another step forward as part of the Government’s continued action on all 76 recommendations contained in the Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
In his Final Report, Commissioner Hayne recommended that BEAR be extended to all APRA regulated entities. The new Financial Accountability Regime will apply on a staggered basis to all general and life insurers, private health insurers, superannuation entities, and licensed non-operating holding companies.
In its response to the Royal Commission, the Government also committed to extending the regime to solely ASIC regulated entities and will consult on how this extension should be implemented in following the implementation of the Financial Accountability Regime to prudentially regulated entities.
Financial Accountability Regime entities will be subject to accountability, key personnel, notification and deferred remuneration obligations. These obligations will ensure that senior executives of these financial entities will be more accountable for the activities of the organisation for which they are responsible and, consistent with the BEAR, impose strict consequences for those who fail to perform their roles with competence, honesty or integrity.
Restoring trust in Australia’s financial system is part of our plan for a stronger economy.
The Proposals Paper is available on the Treasury website.