To: All entities covered by the FAR
The Financial Accountability Regime (FAR) has been in place for 18 months across all regulated industries. APRA and ASIC, consistent with their commitments under the CFR Better Regulation Roadmap, have reviewed the appropriateness of the settings in the FAR regime.
Informed by experience administering the regime and engagement with industry, APRA and ASIC have developed two proposals to streamline FAR administration through changes to the FAR Regulator Rules and regulatory expectations. These proposals relate to areas where we consider that burden for entities can be reduced while maintaining clear accountability standards.
APRA and ASIC are now formally consulting on changes to the FAR Regulator Rules and associated regulatory guidance to implement these proposals. Subject to consultation feedback, APRA and ASIC intend to finalise the proposed changes set out in this letter by the end of 2026, with commencement planned for early 2027.
In addition to these proposals, the Government also plans to consult on reforms to the FAR legislation which will be managed through a Treasury consultation process.
Summary of proposed changes
| Current requirement/guidance | Proposed change | Rationale | Consultation document |
|---|---|---|---|
| The Financial Accountability Regime (Information for register) Regulator Rules 2024 (Regulator Rules) prescribe key functions as prescribed information for inclusion in the Register of accountable persons | Key functions will no longer be prescribed information | Key functions may assist contextual understanding but are not necessary to identify accountable persons or their areas of accountability. Removing these requirements will reduce reporting provided by accountable persons. | Draft revised Regulator Rules |
| The current Information Paper Financial Accountability Regime: Information for accountable entities1 sets out the Regulators’ expectation that reporting lines to an accountable person are included in accountability maps | APRA and ASIC will no longer expect that reporting lines to accountable persons will be included in accountability maps. This will reduce ongoing notification requirements for enhanced entities. | Reporting linesto accountable persons provide organisational context but are not essential to understanding FAR accountability. Reporting lines to an accountable person can change regularly. Removing this information from accountability maps should reduce the volume of notifications of material changes. | Draft revised FAR Information Paper
|
Documents for consultation
The proposed changes described above are reflected in the following consultation documents:
- draft revised Financial Accountability Regime (Information for register) Regulator Rules 2024
- draft revised Financial Accountability Regime Information Paper.2
Request for submissions
APRA and ASIC invite written submissions on the draft proposals in this letter and associated changes to the Regulator Rules and FAR Information Paper. We also welcome responses to the specific questions below.
Additional consultation questions
- Will the proposed changes materially reduce the time and costs of FAR reporting obligations and ongoing compliance? Please provide a quantitative estimate of time and cost impact where possible.
- Will the proposed changes weaken or otherwise affect accountability? If so, how?
- Are there any unintended consequences of the proposed changes?
- Are there any other areas APRA and ASIC could provide further clarity on or reduce regulatory burden?
Written submissions should be sent to PolicyDevelopment@apra.gov.au by 2 October 2026 addressed to:
General Manager, Policy and Frameworks
Policy and Advice Division
Australian Prudential Regulation Authority
Important disclosure information
All information in submissions will be made available to the public on APRA’s website unless a respondent expressly requests that all or part of the submission is to remain in confidence. Automatically generated confidentiality statements in emails will not suffice for this purpose.
Respondents who would like part of their submission to remain in confidence should provide this information marked as confidential in a separate attachment.
Submissions may be the subject of a request for access made under the Freedom of Information Act 1982(FOIA). APRA and ASIC will determine such requests, if any, in accordance with the provisions of the FOIA. Information in submissions may be protected by section 56 of the Australian Prudential Regulation Authority Act 1998or section 127 of the Australian Securities and Investments Commission Act 2001and may be exempt from production under the FOIA.
Yours sincerely,
Therese McCarthy Hockey, APRA Deputy Chair | Alan Kirkland, ASIC Commissioner |