Banking sector transition to Financial Accountability Regime

Royal Assent for the Financial Accountability Regime Bill was given on 14 September 2023. Background.

The Financial Accountability Regime will commence on 15 March 2024 for Banks and 15 March 2025 for all other regulated entities including insurers and superannuation responsible entities.

The Supporting FAR implementation: National Consumer Credit Protection (Large ADI) Determination 2023 was registered on 14 September 2023.

The Determination sets out the methodology to determine whether an authorised deposit-taking institution (ADI) is a large ADI for the purpose of the National Consumer Credit Protection Act 2009 (Cth) including mandatory comprehensive credit reporting for large ADI’s under section 133CN.

An ADI is a large ADI at a time during a financial year if the ADI’s total asset size at the start of the financial year is or exceeds $124 billion (indexed annually from 1 January 2024).

Large ADIs must provide comprehensive credit information on consumer credit accounts to certain credit reporting bodies.

The methodology for determining the size of an ADI is based on total assets reported to APRA in earlier financial years. An ADI will need to monitor its size every financial year to know whether it is a large ADI and whether the mandatory comprehensive credit reporting regime applies to it.

If you found this article helpful, then subscribe to our news emails to keep up to date and look at our video courses for in-depth training. Use the search box at the top right of this page or the categories list on the right hand side of this page to check for other articles on the same or related matters.

David Jacobson

Author: David Jacobson
Principal, Bright Corporate Law
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.

Print Friendly, PDF & Email

Your Compliance Support Plan

We understand you need a cost-effective way to keep up to date with regulatory changes. Talk to us about our fixed price plans.