FAR implementation for ADIs
FAR submissions in APRA Connect
FAR Entity Profile forms can be submitted in APRA Connect from 15 March 2024.
FAR forms will need to be submitted in the following sequence:
- Submit the accountable entity’s FAR Entity Profile form;
- Await receipt of the APRA Connect notification email, confirming your entity profile has been successfully processed; thereafter,
- Create and submit FAR Register Accountable Person, FAR Notification of Change to Accountable Person and FAR Accountability Map forms, as relevant.
The above process is reflective of a letter released by APRA and ASIC on 5 February 2024, which recognises that industry may require additional time to finalise compliance in relation to registration applications and notification obligations. The Regulators expect entities to submit their registration applications and to make relevant notifications as promptly as possible, and by no later than 30 June 2024.
APRA Connect FAR form drop-in sessions
To support implementation, the Regulators will hold APRA Connect FAR form drop-in sessions. These sessions are designed to assist individuals responsible for submitting FAR forms via APRA Connect (i.e. those who are assigned the ‘FAR Administrator’ role in APRA Connect) by providing a walkthrough of the FAR forms, followed by an opportunity to ask questions.
| Drop-in sessions | Session date |
|---|---|
| Submitting an entity profile | 20 March 2024 |
| Registering an accountable person | 26 March 2024 |
| Updating a transitioning accountable person’s information | 3 April 2024 |
Invitations, containing a link for registration, will be sent shortly. Entities are encouraged to submit questions to FAR@apra.gov.au ahead of these sessions.
New APRA Connect roles
To assist accountable entities in ensuring appropriate levels of governance and privacy when submitting information to the Regulators, two new APRA Connect roles have been created - ‘FAR Administrator’ and ‘FAR Breach Administrator’. These roles will need to be assigned to designated persons to create and submit the relevant APRA Connect FAR forms. The accountable entity’s Regulatory Reporting Administrator will receive an email with instructions on assigning these roles.
Draft versus formal submissions
As pre-commencement activities are no longer applicable, the Regulators will not be processing draft submissions. Therefore, when submitting a registration form, a notifiable event form or an accountability map form, do not select the checkbox ‘Submitting as a draft’ as the submission lodgement status. Instead, select the checkbox indicating formal submission of the respective form.
Submission reviews
During the extended submission period, 15 March to 30 June, the Regulators will focus on processing submissions and may not be able to conduct any detailed reviews or provide feedback as previously indicated. The Regulators may undertake more detailed reviews of FAR submissions after this period and in the future.
Accountable person commencement date
When submitting registration forms during the extended submission period, an accountable person’s commencement date may be before the form submission date. Where this is the case, entities will be prompted to provide an explanation for the commencement date being in the past. The Regulators recommend that:
- when a reason is requested for why the Commencement date is in the past, select ‘Other’ from the drop-down box; and
- in the ‘Additional information’ section of the form, entities include ‘Submission for ADI FAR commencement’ as the rationale.
For accountable persons transitioning from the Banking Executive Accountability Regime (BEAR) to the FAR, the commencement date in the notifiable event form will be pre-populated with the ADI FAR commencement date.
Treatment of form start dates
If a registration or notification form is submitted during the extended submission period, but the individual / accountable person held a particular responsibility and key function from the ADI FAR commencement date, then the relevant start dates would align to the ADI FAR commencement.
Managing transitioning accountable person cessations during the submission period
The following process should be followed:
- The accountable entity will need to submit a notification form for the transitioning accountable person, containing the additional, updated information required under the FAR prior to ceasing that person.
- A new notification form will then need to be submitted, containing the effective date of the accountable person’s cessation. Please do not submit this notification on the same date as the previous notification, to ensure records are accurately reflected in the FAR register.
- A new registration or notification form, advising of the reallocation of the relevant responsibility and key functions, will also be required.
Implementation and administration of the FAR for foreign ADIs and their significant related entities (SREs)
The Explanatory Statement accompanying the Financial Accountability Regime (Minister) Rules 2024 states, in relation to a foreign accountable entity’s obligations under the FAR in respect of SREs, that a foreign accountable entity has obligations only for a locally incorporated subsidiary that has a material and substantial effect on the Australian branch and meets the other limbs of the definition of a ‘significant related entity’ in subsection 12(1) of the Financial Accountability Regime Act 2023.
The Regulators will implement and administer the FAR keeping in mind this position in the Explanatory Statement. Therefore, foreign ADIs are expected to give due consideration to subsidiaries incorporated in Australia as part of their SRE assessment process but are not expected to provide information regarding their subsidiaries incorporated offshore when nominating SREs.
Support for ADIs and ADI NOHCs
The following guidance materials are available to support ADIs and ADI NOHCs transition to the FAR and provide the required information to the Regulators:
- Information paper - ADIs: Transitioning to the Financial Accountability Regime
- FAR reporting form instruction guides, available for each APRA Connect FAR form.
- Videos, providing a walkthrough of each of the FAR forms, will be made available via the FAR presentations page.
Single point of contact
Please direct any queries or requests to the Regulators’ FAR@apra.gov.au mailbox.
Any personal information submitted to this mailbox will be handled in accordance with APRA’s Privacy Policy and FAR privacy collection notice, both available on APRA’s website.