APRA Issues Proposal on Deferred Remuneration Obligations Under BEAR
APRA launched a proposal to allow a structure-neutral application of the deferred remuneration obligations under the Banking Executive Accountability Regime (BEAR). The consultation is for a draft schedule of the kinds of remuneration that are not variable remuneration, to be made by legislative instrument. Submissions are requested by April 30, 2019. APRA will release the final legislative instrument before July 01, 2019, which is the commencement date of the BEAR for medium and small authorized deposit-taking institutions.
APRA proposes that, irrespective of the organizational structure or whether the authorized deposit-taking institution is a locally incorporated authorized deposit-taking institution or foreign authorized deposit-taking institution, where an individual has both an accountable person role with an authorized deposit-taking institution (or subsidiary of an authorized deposit-taking institution) and another role, only the portion of an individual’s variable remuneration that relates to the accountable person role would be subject to the deferral requirements under Division 4 of Part IIAA of the Banking Act. APRA expects that this proposed legislative instrument will not result in any large authorized deposit-taking institution (that is, a major bank) initiating changes to the amount of deferred remuneration, as the legislative instrument does not apply to their particular corporate structure. The proposed legislative instrument is intended to ensure that application of the deferred remuneration obligations across authorized deposit-taking institutions is consistent with the intent of BEAR.
Related Links
Comment Due Date: April 30, 2019
Keywords: Asia Pacific, Australia, Banking, BEAR, Governance, Deferred Remuneration Obligations, Operational Risk, APRA
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.