The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) 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.
APRA and ASIC estimate the changes will reduce reporting for all accountable entities and approximately 4500 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.
The draft consultation materials and letter can be viewed on APRA’s website at: Streamlining FAR administration .
