APRA released an information paper to assist authorized deposit-taking institutions to meet their obligations under the Banking Executive Accountability Regime (BEAR). BEAR, which establishes heightened standards of accountability among deposit-taking institutions and their most senior executives and directors, came into force for the largest banks from July 01, 2018. It will apply to all other authorized deposit-taking institutions from July 01, 2019.
BEAR was established under legislation and is administered and enforced by APRA. The information paper, based on the experience of APRA in implementing the regime for the largest banks, is intended to assist all other authorized deposit-taking institutions to prepare to implement BEAR and to helping the largest authorized deposit-taking institutions refine and embed the regime. It clarifies expectations about of how an authorized deposit-taking institution can effectively implement the accountability regime on matters including the following:
Identifying and registering accountable persons
Creating and submitting an accountability statement for each accountable person and an accountability map for the authorized deposit-taking institution
Establishing a remuneration policy requiring that a portion of accountable persons’ variable remuneration be deferred for a minimum of four years and reduced commensurate with any failure to meet their obligations
Notifying APRA of any accountability-related changes or breaches of accountability obligations
The information paper also includes questions and answers based on some of the issues commonly raised by authorized deposit-taking institutions during implementation. APRA will address enforcement-related issues, including the disqualification of accountable persons and civil penalties under the BEAR, in a subsequent paper.
Keywords: Asia Pacific, Australia, Banking, BEAR, Governance, Accountability Regime, APRA
Previous ArticleBaFin Publishes Form and Guide for Less Significant Institutions
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
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.