Certain ministerial rules have not been finalised
As the Labor government grapples with finalising crucial details necessary for the implementation of new banker accountability laws, regulators have given banks more time to finalise compliance with certain Financial Accountability Regime (FAR) requirements.
“Given that the minister rules are in the process of being finalised, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) recognise that industry may require additional time, beyond the commencement date, to finalise compliance with the new FAR requirements,” read part of the letter sent by the regulators to banks earlier this week.
The requirements are in relation to submission of applications for registration of new accountable persons and compliance with core or enhanced notification obligations.
FAR, enacted by Parliament in September, is a direct response to the recommendations of the Hayne royal commission. Due to commence for the banking industry and replace the Banking Executive Accountability Regime (BEAR) on March 15, implementation of certain compliance measures has been delayed due to missing details.
According to a report published by The Australian, details, including the specific executive positions that will be considered “accountable persons” under the regime, depend on ministerial rules that have not been released by assistant treasurer and financial services minister Stephen Jones (pictured).
APRA and ASIC have indicated that once the ministerial rules are released, they will provide their own guidance to assist banks in compliance with the FAR requirements.
“Given the guidance currently available, we expect entities to submit their registration applications and to make relevant notifications to us as promptly as possible, and by no later than 30 June 2024,” the regulators said.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
