Australia’s financial regulators have removed two reporting requirements under the Financial Accountability Regime, a change they estimate will simplify administration for all covered entities and about 4,500 accountable people.
The Australian Securities and Investments Commission and the Australian Prudential Regulation Authority finalised the changes on 13 November after consultation. Accountable entities will no longer have to report key functions for inclusion on the FAR register. Accountability maps will also no longer need to identify every person who reports directly to an accountable person.
The regulators expect the second change to halve the number of updates made to accountability maps. Their revised material includes a reissued ASIC Regulatory Guide 279 and an amended regulator rule governing information for the FAR register.
The adjustment is administrative rather than substantive. ASIC and APRA said the accountability obligations imposed on entities and accountable persons remain unchanged. Firms must therefore alter their reporting processes without treating the streamlined form of the register or maps as a reduction in the underlying allocation of responsibility.
Some consultation respondents asked the regulators to clarify the thresholds for notifying them of changes in accountability. ASIC and APRA said that question fell outside the present reform, though it may inform later regulatory or legislative work.
The change took effect on 13 November. It follows a separate October adjustment under which ASIC reduced the evidence-of-competence material that Australian financial services licensees must submit for responsible managers who are also accountable persons.
The final guidance and amended rule are available through ASIC’s official release.
