Australian Securities and Investments Commission and Australian Prudential Regulation Authority propose Financial Accountability Regime simplifications

The Australian Securities and Investments Commission and the Australian Prudential Regulation Authority will consult on changes to streamline parts of the Financial Accountability Regime while keeping accountability standards in place. The package would remove key functions requirements from the FAR regulator rules, raise the materiality threshold for notifying the regulators about changes in accountability, and stop requiring accountability maps to include information on accountable persons’ direct reports. The regulators estimate the changes would reduce reporting across all accountable entities and about 4,500 accountable people, with accountability map changes cutting updates by at least half. The wider simplification package also includes adjacent changes outside the core FAR rule amendments. APRA is commencing consultation on removing all reporting requirements under its fit and proper regime as part of governance reforms. ASIC will reduce responsible manager Australian financial services licensing requirements for FAR entities by no longer requiring evidence of competence submissions from October 2026, a change expected to benefit about 2,000 current Australian financial services licensees. In parallel, the regulators will support the Government’s proposed legislative changes to the FAR, under which entities would provide accountability statements and maps only on request rather than up front and would receive more time to register accountable persons. ASIC and APRA aim to implement their changes by the end of 2026 following consultation.