Australian Prudential Regulation Authority and Australian Securities and Investments Commission propose lighter Financial Accountability Regime reporting for 4500 accountable people

The Australian Prudential Regulation Authority and the Australian Securities and Investments Commission have proposed changes to streamline parts of the Financial Accountability Regime while keeping accountability standards unchanged. The package would remove key functions requirements from the FAR regulator rules, raise the materiality threshold for notifying changes in accountability, and stop requiring accountability maps to include information on accountable persons’ direct reports. APRA and ASIC estimate the changes will reduce reporting across all accountable entities and the 4,500 affected accountable people. The accountability map change is expected to at least halve the number of updates entities need to make. Alongside the FAR changes, APRA has commenced consultation on removing all reporting requirements under its fit and proper regime as part of its wider governance reforms for banking, superannuation and insurance. ASIC will also reduce, from October 2026, the evidence of competence that FAR entities must submit for responsible managers under Australian financial services licensing requirements, a change expected to benefit about 2,000 current licensees. APRA and ASIC will consult on the FAR changes and aim to implement them by the end of 2026, while also supporting government legislative amendments under the Better Regulation reforms. Those proposed legislative changes would mean entities provide accountability statements and maps only on request rather than upfront and would allow more time to register accountable persons. APRA’s separate governance consultation is open until 28 August 2026, with final standards planned for late 2026 and commencement expected from early 2028.