The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have commenced consultation on proposed changes to streamline aspects of the Financial Accountability Regime (FAR).

The proposals include removing key functions requirements from the FAR regulator rules and no longer requiring information on accountable persons’ direct reports in accountability maps. These changes are intended to reduce regulatory burden for entities, while ensuring regulators have the information they require to oversee the regime.

ASIC and APRA estimate the changes will reduce reporting for all accountable entities and approximately 4,500 accountable people, and halve the number of updates to accountability maps.

APRA Deputy Chair Therese McCarthy Hockey said the consultation is part of APRA’s broader effort to get the balance right by reducing unnecessary burden while maintaining financial safety and stability.

‘These proposed changes maintain strong accountability settings while minimising reporting requirements and supporting efficiency and productivity. They will allow entities to spend less time on administration and more time running their businesses,’ Ms McCarthy Hockey said.

ASIC Commissioner Alan Kirkland said the consultation forms part of ASIC’s ongoing focus on regulatory simplification.

‘We continue to explore opportunities to streamline the way entities deal with us in the areas we regulate,’ Mr Kirkland said.

‘The proposed changes to FAR reporting will simplify reporting without undermining the strong accountability standards that Australians expect from their banks, superannuation funds and insurers.’

Subject to consultation feedback, the regulators intend to finalise the changes by the end of 2026, with effect from early 2027.

Related links

Streamlining FAR administration | APRA

 

The Australian Securities and Investments Commission (ASIC) is Australia's corporate, markets, financial services and consumer credit regulator. In administering the FAR, ASIC’s role is to focus on impacts to market integrity and consumer protection in the financial and payments systems.

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9.8 trillion in assets for Australian depositors, policyholders and superannuation fund members.