The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have published information to help insurers and superannuation trustees prepare for the commencement of the Financial Accountability Regime (FAR) for their sectors on 15 March 2025.
The consultation information package for insurance and superannuation entities comprises:
- a joint letter introducing the consultation package and outlining steps insurance and superannuation entities should take ahead of the FAR’s commencement on 15 March 2025; and
- proposed amendments to the Regulator rules and draft key functions descriptions for insurance and superannuation entities.
APRA is seeking feedback on the draft Financial Accountability Regime Regulator Rules Amendment Instrument No. 1 of 2024 (draft amendment instrument) and supporting descriptions for each proposed Insurance Key Function and RSE licensee Key Function.
The drafts are in addition to RG 279 Financial Accountability Regime: Information for accountable entities.
APRA has listed the following key implementation activities for all insurance and superannuation entities:
- Review RG 279;
- Determine whether you are an ‘enhanced’ or ‘core’ accountable entity (based on the thresholds set out in the Financial Accountability Regime (Minister) Rules 2024) and identify your significant related entities (SREs), if any;
- Undertake accountability mapping to support compliance with relevant key personnel obligations;
- Identify your accountable persons, and accountable persons of your SREs;
- Put in place processes to ensure you comply with your notification obligations;
- For entities that are part of a corporate group, determine the impact of the FAR on other entities within the group (including any SREs);
- Assess and strengthen your remuneration policies to comply with the deferred remuneration obligations under the FAR.
Enhanced insurance and superannuation entities should also:
- Review the updated accountability statement guidance and template; and
- Prepare your accountability maps and accountability statements.
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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.
