In February of 2019 the Financial Accountability Regime (FAR) was proposed as a government response to the Financial Services Royal Commission. The FAR strengthened and expanded the Banking Executive Accountability Regime (BEAR) which was introduced in response to a growing consensus that “senior executives of financial institutions have not been held accountable” for the numerous financial scandals which have occurred since the 2008 Global Financial Crisis. (See HERE)
The FAR Bill has been the subject of past newsletters. (See HERE)
The banking industry (ADIs), regulated by BEAR, was slated to come under the regime on 1 July 2022 (or six months following Royal Assent, whichever is later). The insurance and superannuation industries which were not captured under the BEAR were to follow on 1 July 2023 or eighteen months following Royal Assent (whichever is later).
In October of 2021 the FAR Bill was introduced to parliament and read a first time and second time. In April 2022 the FAR Bill was stopped in its progress to Royal Assent, and ‘lapsed at dissolution’ whilst Parliament is prorogued, and elections are underway. A lapsed bill due to a prorogued Parliament could still be reintroduced and proceeded with at the last stage it had previously reached provided that a general election has not taken place between the two sessions. (See HERE)
This means that the Bill, if reintroduced to Parliament could be a very different Bill than the one we have seen thus far as it moves through each stage of the proceedings once again.
Currently, BEAR, which was intended to be repealed in favour of FAR, will remain in place while FAR is sidelined until the next sitting government decides whether to reintroduce it.© Guerdon Associates 2023 Back to all articles