The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) yesterday published new information to help insurers and superannuation trustees prepare for the commencement of the Financial Accountability Regime (FAR).
The FAR already applies to the banking industry and takes effect for the insurance and superannuation industries from 15 March 2025. It imposes a strengthened responsibility and accountability framework to improve the risk governance cultures of APRA-regulated entities, their directors, and most senior executives.
The new information package updates previously released information to reflect the final regulator rules, including:
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an updated information paper to assist entities and their accountable persons in understanding and complying with their obligations under the FAR, with changes made to reflect the final list of key functions and their descriptions;
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an updated accountability statement guide and template to help entities subject to the FAR enhanced notification obligations to prepare accountability statements; and
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reporting form instructions to assist insurance and superannuation entities in providing the required information to ASIC and APRA.
Guidance materials for the new information package are available at: Financial Accountability Regime on APRA’s and ASIC’s websites. This information completes the total package of FAR guidance materials.
Timeline
The timeline below provides indicative dates of proposed industry engagements and the support available leading up to FAR commencement.
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6 Mar 2024: FAR minister rules released
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14 Mar 2024: Release of guidance materials for all industries; and letter to insurance and superannuation entities
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11 Jul 2024: Release of final information package including final Regulator rules and updated guidance materials
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3Q-4Q 2024: Webinars with insurance and superannuation industries, and videos on how to complete APRA Connect FAR forms
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Nov-Dec 2024: FAR Entity Profile submission window, supported by an APRA Connect FAR drop-in session
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13-22 Feb 2025: Register Accountable Persons submission window, supported by an APRA Connect FAR drop-in session
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15 Mar 2025: FAR commences for insurance and superannuation entities