The new Government has re-introduced the Financial Accountability Regime Bill into the House of Representatives. The Bill, when passed, will extend the Banking Executive Accountability Regime to all APRA-regulated entities under the joint administration of APRA and ASIC. Background.

UPDATE: The Bill was passed by the House of Representatives on 28 September 2022 and will be sent to the Senate.

UPDATE: On 28 September 2022, the Senate referred the provisions of the Financial Accountability Regime Bill 2022, Financial Sector Reform Bill 2022, Financial Services Compensation Scheme of Last Resort Levy Bill 2022 and Financial Services Compensation Scheme of Last Resort Levy (Collection) Bill 2022, to the Economics Legislation Committee for inquiry and report by 20 October 2022. 

The Financial Accountability Regime will apply to the banking industry six months after commencement of the Financial Accountability Regime Bill 2022 and to any new entrants beyond that, from the time they become an ADI or a non-operating holding company.

The regime will apply to the insurance and superannuation industries 18 months after commencement of the Financial Accountability Regime Bill 2022, and to any new entrants beyond that, from the time they become licensed.

The entities to which the Financial Accountability Regime applies are:
• ADIs;
• authorised non-operating holding companies of ADIs;
• general insurers;
• authorised non-operating holding companies of general insurers;
• life companies;
• registered non-operating holding companies of life companies;
• private health insurers; and
• registrable superannuation entity licensees (or RSE licensees).

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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.