Financial Accountability Regime Act 2023

The Financial Accountability Regime Act 2023 establishes a strengthened accountability framework for financial entities in the banking, insurance and superannuation industries. The Act aims to ensure that accountable entities conduct their business with honesty and integrity, and deal with regulatory bodies in an open and cooperative manner.

The Act binds the Crown in each of its capacities and extends to every external Territory. It also provides for a range of compliance and enforcement powers, including the power to issue directions and impose civil penalties.

Accountable entities are required to take reasonable steps to prevent adverse effects on their prudential standing or reputation, and to ensure that senior executives and other key personnel meet standards of conduct. The Act also requires accountable persons to defer variable remuneration if it exceeds a certain amount.

The Regulator has the power to investigate and enforce compliance with the Act, including by applying directions and imposing civil penalties. The Act also provides for reviewable decisions and allows affected persons to request reconsideration of those decisions.

The Financial Accountability Regime Act 2023 includes provisions related to foreign accountable entities, life companies, and private health insurers. It also establishes a regulatory framework for the banking, insurance and superannuation industries, and provides for the regulation of significant related entities.

Overall, the Act aims to strengthen accountability in the financial sector, promote transparency and cooperation between regulatory bodies and industry participants, and ensure that financial entities operate with integrity and honesty.