> ## Content Index > Fetch the complete content index at: https://www.benchmarkanalytics.com.au/llms.txt > Use this file to discover other available public pages before exploring further. # Australia's banking accountability rules are being simplified. What is changing? - URL: https://www.benchmarkanalytics.com.au/australias-banking-accountability-rules-are-being-simplified-what-is-changing/ - Published: 2026-09-27T21:00:36.000Z - Updated: 2026-09-27T21:00:35.000Z - Description: Australia's financial regulators are proposing to simplify executive accountability rules affecting 4,500 people. The changes could halve accountability-map updates without removing the underlying obligations. - Author: Nick Hossack - Tags: Financial Accountability Regime Reforms, APRA, ASIC, Banking Regulation, Remuneration Australia's financial regulators are proposing to simplify the Financial Accountability Regime (FAR), which governs the responsibilities of senior executives and directors across banking, insurance and superannuation. The Australian Prudential Regulation Authority (APRA) and Australian Securities and Investments Commission (ASIC) estimate that the changes will reduce reporting obligations affecting approximately 4,500 accountable people and at least halve the number of updates institutions make to their accountability maps. ### What is FAR? FAR requires financial institutions to identify which senior executives and directors are responsible for particular activities, risks and decisions. Institutions must allocate accountability clearly, register accountable individuals and notify regulators of specified changes. Senior executives have personal obligations, including taking reasonable steps to prevent matters arising that would adversely affect the institution's prudential standing. The regime also links remuneration to accountability. Generally, at least 40% of an accountable person's variable remuneration must be deferred for four years, subject to a $50,000 threshold and other exemptions. ### How did FAR develop? The Banking Executive Accountability Regime (BEAR) commenced in July 2018 following concerns about misconduct and executive accountability in banking. The 2019 Financial Services Royal Commission recommended extending the framework across APRA-regulated institutions. Parliament enacted FAR in September 2023\. It commenced for banks on 15 March 2024 and extended to insurers and superannuation trustees on 15 March 2025\. Unlike BEAR, which APRA administered alone, FAR is jointly administered by APRA and ASIC. ### Why is FAR being amended? Following implementation and industry consultation, the regulators identified reporting requirements they consider unnecessary for effective supervision. For example, changes to reporting lines can require an institution to update its accountability map even when the underlying executive responsibilities remain unchanged. The proposed reforms seek to distinguish genuine changes in accountability from routine organisational administration. However, the regulators have not yet published a quantified estimate of the resulting dollar savings. ### What are the key changes? In June 2026, APRA and ASIC announced a package of simplification measures. Formal consultation on two regulatory changes commenced in September. First, institutions would no longer need to report prescribed key-function information for inclusion in the register of accountable persons. Second, accountability maps would no longer need to identify accountable persons' direct reporting lines. Regulators estimate this change will at least halve the number of map updates. Separately, the proposed reforms include a higher threshold for notifying changes in accountability. The Government also intends to amend FAR legislation so institutions provide accountability statements and maps on request rather than automatically lodging them. Registration deadlines would be extended. The regulators expect their current consultation proposals to take effect in early 2027\. Submissions close on 2 October 2026. The important test will be whether fewer reporting obligations produce measurable compliance savings without reducing regulators' ability to identify the executives responsible when something goes wrong. | BENCHMARK ANALYTICS \| REGULATION FAR: Reducing the reporting burden APRA and ASIC's proposed financial accountability reforms | | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | 4,500 Accountable people Affected by proposed reporting simplification At least 50% Fewer map updates Estimated reduction for relevant institutions | | What is proposed to change? Requirement Proposed reform Key-function reporting Remove prescribed key-function information from the register Accountability maps Remove direct-reporting-line detail Change notifications Increase the threshold for reporting material changes Initial lodgement Provide maps and statements on request, subject to legislation | | What stays in place? Underlying accountability duties and remuneration-deferral requirements are not being removed. | | Sources: APRA and ASIC, June and September 2026\. Estimates are projected reporting reductions, not verified dollar savings. The proposals remain subject to consultation and, where applicable, legislative change. |