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
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.