In the 2017-18 Budget the Government brought forward a comprehensive package of reforms to strengthen accountability and competition in the banking system.
As part of this package, the Government announced that it will legislate to introduce a new Banking Executive Accountability Regime (BEAR).
The intention of the BEAR is to enhance the responsibility and accountability of ADIs and their directors and senior executives. The BEAR will provide greater clarity regarding their responsibilities and impose on them heightened expectations of behaviour in line with community expectations.
Where these expectations are not met, APRA will be empowered to more easily remove or disqualify individuals, ensure ADIs’ remuneration policies result in financial consequences for individuals, and impose substantial fines on ADIs. ADIs will be required to register individuals with APRA before appointing them as senior executives and directors.
The Government is now releasing this consultation paper, which outlines the key features of the BEAR and the proposed approach for implementation.
All interested parties are encouraged to make a submission by 3 August 2017.This article was first published by http://www.treasury.gov.au