APRA proposed an approach to implementing the end-to-end product responsibility for authorized deposit-taking institutions under the Banking Executive Accountability Regime (BEAR). The proposal aims to enhance customer experience and outcomes by addressing recommendation 1.17 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The consultation on the proposed measures ends on August 23, 2019 and APRA expects to implement the new requirements by July 01, 2020. APRA aims to release a draft schedule, with the proposed product responsibility requirements, for further consultation in October 2019 and the final legislative instrument in December 2019.
APRA has addressed a consultation letter to authorized deposit-taking institutions, detailing how it intends to achieve heightened and clarified product accountability among senior executives. The letter requests feedback on four key considerations related to implementing the proposed product responsibility requirements: the scope of accountability, product coverage, the structure of the legal mechanism, and the application of joint accountability in authorized deposit-taking institutions and authorized deposit-taking institutions groups. Although the requirements directly apply to the locally incorporated authorized deposit-taking institutions, APRA strongly encourages all authorized deposit-taking institutions to consider the elements of strengthened product accountability as they relate to their accountable persons, along with the accountability statements and map. Given the Government announcement that the BEAR will be extended to insurers and Registrable Superannuation Entity licensees, all APRA-regulated entities may have an interest in providing feedback on the proposed approach.
Comment Due Date: August 23, 2019
Effective Date: July 01, 2020 (Proposed)
Keywords: Asia Pacific, Australia, Banking, Insurance, Pensions, Superannuation, BEAR, Operational Risk, Accountability Regime, APRA
Previous ArticleEU Blockchain Observatory of EC Publishes June Newsletter
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.