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 ArticleRandal K. Quarles of FED Speaks on Improving Post-Crisis Regulations
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.
The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures
The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.
The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.
The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.
The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.
The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.