Melita Simic
Head of Technical Services, Pacific
The long-awaited Financial Accountability Regime Act 2023 (Cth) (FAR Act) is finally here. From 15 March 2024, the FAR Act will come into effect in Australia, replacing the Banking Executive Accountability Regime (BEAR) and apply to all authorised deposit-taking institutions (ADIs). Additionally, the Financial Accountability Regime (Consequential Amendments) Act 2023 (Cth) (FCA Act) will provide various transitional mechanisms for ADIs previously subject to the BEAR.
The new financial accountability regime aims to improve the risk and governance cultures of Australia’s financial institutions through a strengthened responsibility and accountability framework.
Further to our August 2021 whitepaper, we now provide an update on potential insurance implications of the new legislation, including policy amendments you may need to consider in relation to your professional indemnity (PI) and directors and officers (D&O) liability insurances.
Are you FAR ready? How will you be impacted from 15 March 2024? Download our whitepaper to learn more.
Head of Technical Services, Pacific
Head of Financial and Professional Services, Pacific
Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. LCPA 24/056