The FAR is the government’s response to recommendations made by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry to extend the Banking Executive Accountability Regime (BEAR) to strengthen the responsibility and accountability of the directors and most senior and influential executives of financial institutions.
The FAR follows many of the provisions of its predecessor, the BEAR.
On 16 July 2021, Treasury released the consultation package which included the Exposure Draft and Explanatory Memorandum for the implementation of the Financial Accountability Regime (FAR).
On 8 March 2023, the Treasury released the FAR Bill 2023 and it passed on 5th September 2023. The new bill does not have any significant changes from the bill introduced in 2021.
Proposed implementation dates:
- Banks or Authorised deposit-taking institutions (ADIs) and their non-operating holding companies (NOHCs) have 6 months, March 2024.
- Insurers, their licensed NOHCs and registrable superannuation entity (RSE) licensees have 18 months, March 2025.
Accountability
Katriana Antoniadis
Director, Assurance Risk and Digital Trust, Sydney, PwC Australia
Remuneration
Cassandra Fung
Partner, Reward Advisory Services, PwC Australia
Legal
Andrew Wheeler
Legal Partner, Corporate/M&A, PwC Australia
