The Australian Prudential Regulation Authority (APRA) has finalised new requirements for authorised deposit-taking institutions (ADIs), insurers and superannuation entities to publicly disclose information on aspects of their remuneration.
Under the updates to Prudential Standard CPS 511 Remuneration, APRA-regulated entities will need to annually publish information on their remuneration frameworks, design, governance and outcomes.
Larger and more complex entities (significant financial institutions) must disclose quantitative information, including on payments to top executives on an aggregated basis, and how they have placed a material weight on non-financial measures such as risk management.
Proposed disclosures by non-SFIs include summary information on their remuneration framework, design and governance and key aspects of variable remuneration, where relevant.
The new disclosure requirements will now commence for all regulated entities from their first full financial year following 1 January 2024.
CPS 511 will also now allow entities to publish disclosures as soon as possible after lodgement of their annual financial statements with ASIC and not more than six months after the end of the financial year to which the disclosures relate. If an entity is not required to lodge financial statements with ASIC, it must make the required disclosures not more than six months after the end of the financial year to which the disclosures relate.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
