The government recently released a proposal paper seeking feedback on plans to extend the existing Banking Executive Accountability Regime (BEAR) to all Australian Prudential Regulation Authority (APRA) regulated entities and to directors/senior executives in accordance with the government's response to several Hayne Commission recommendations. The expanded regime will be called the Financial Accountability Regime (FAR).
Consultation on the proposed changes closed on the 14 February and the government has flagged its intention to introduce legislation to by the end of the year. However, no precise implementation date has been confirmed.
MinterEllison's Mark Standen recently presented a paper at the Law Council Conference, on the implications of extending the proposed FAR regime to the superannuation sector.
[Note: The full text of the paper can be downloaded in full at the end of this post.]
The paper includes:
Mr Standen suggests that a practical approach to a FAR implementation project for an RSE licensee is likely to include the following seven steps:
Commenting on the proposed changes, Mr Standen emphasised the value of early preparation.
'Given the complexity of the changes, it would be prudent for entities to start thinking, if they haven't already, about some of the steps I've outlined in the paper. We don't know exactly when the changes will be introduced, and we don't know that the detail will remain exactly the same as what has been proposed, but we know that change is inevitable and therefore, as Deputy Chair Helen Rowell recently said, it makes sense to start to prepare.