The Government has re-introduced its Financial Accountability Regime package into the House of Representatives with the goal of having the Bills passed by the sittings ending 30 March 2023, which is the last sittings scheduled before the Budget session in May. Background.

UPDATE: As at 30 March 2023, the Bills have been passed by the House of Representatives but not the Senate. The Senate will next sit on 9-11 May (for the Budget sittings) and then 13-22 June. 

UPDATE: As at 12 May 2023, the Bills have not been passed by the Senate. The Senate will next sit on
13-22 June. 

The Financial Accountability Regime Bill 2023 does not include personal fines for directors and executives but it still requires entities in the banking, insurance and superannuation industries to defer at least 40 per cent of the variable remuneration (for example, bonuses and incentive payments) of their directors and most senior executives for a minimum of 4 years, and to reduce their variable remuneration for non-compliance with their accountability obligations.

There are extensive enforcement provisions.

The package consists of:

• Financial Accountability Regime Bill 2023
• Financial Accountability Regime (Consequential Amendments) Bill 2023
• Treasury Laws Amendment (Financial Services Compensation Scheme of Last Resort) Bill 2023
• Financial Services Compensation Scheme of Last Resort Levy (Collection) Bill 2023
• Financial Services Compensation Scheme of Last Resort Levy Bill 2023

The Financial Accountability Regime Bill 2023 commences the day after Royal Assent. The regime will apply to the banking industry six months after commencement of the Financial Accountability Regime Bill 2023 and to any new entrants beyond that, from the time they become an ADI or a non-operating holding company.

The regime will apply to the insurance and superannuation industries 18 months after the commencement of the Financial Accountability Regime Bill 2023, and to any new entrants beyond that, from the time they become licensed.

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