In more detail
The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have recently issued a joint letter effectively stating that due to a delay in the publishing of the Minister Rules that accompany the FAR, that ADIs may require additional time to comply with the new FAR obligations. ASIC and APRA have provided until 30 June 2024 for entities to submit applications for registration of new accountable persons and comply with core or enhanced notification obligations.
Other FAR obligations will still commence on 15 March 2024.
Given that there are a number of differences between the BEAR and the FAR, it is important that companies in the banking industry ensure that they have appropriate and updated documentation in place as they transition away from the BEAR to the FAR. This includes:
- Ensuring documentation for accountable persons reflects their obligations under the FAR.
- Ensuring that any existing documents that reference the BEAR are updated to reflect the changes introduced by the FAR.
- Having workplace policies and agreements in place regarding the deferment of variable remuneration for accountable persons, in accordance with the FAR.
There are only a few more weeks for companies to ensure their transition away from the BEAR and compliance with the first FAR changes.
For the insurance and superannuation industries, who will be joining the accountability regime for accountable persons for the first time, there is still time. The FAR will not come into force for insurance and superannuation industries until 15 March 2025. However, as we saw when the BEAR was introduced, it does take time to implement the necessary structures and documentation for accountable persons, so it important that action for the entities affected by the introduction of the FAR progress these matters quickly.
If you need assistance with any aspects relating to the transition to the FAR, please reach out to us.
