The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have announced that they will streamline aspects of the Financial Accountability Regime (FAR) to reduce regulatory burden without lowering accountability standards.
APRA and ASIC say they will remove key functions requirements from the FAR regulator rules; raise the materiality threshold for notifying APRA and ASIC of changes in accountability; and no longer require information on accountable persons’ direct reports in accountability maps.
APRA has also commenced consultation on an updated draft of CPS 510 Governance which removes duplicated fit and proper reporting now that Financial Accountability Regime reporting is in place.
ASIC will streamline responsible manager Australian financial services licensing requirements for FAR entities by reducing requirements to submit evidence of competence from October 2026.
APRA and ASIC will consult on the changes and aim to implement them by the end of 2026.
The new CPS 510 is also designed to:
• strengthen requirements for board governance, conflicts management and the fitness and propriety of directors and executives;
• improve flexibility by enabling boards to delegate APRA’s board requirements in other prudential standards, and by aligning governance requirements with other codes and regimes where appropriate; and
• harmonise requirements by combining five existing prudential standards into one and setting consistent governance minimums for all APRA-regulated entities.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
