The passage of the legislation through the relatively newly elected federal parliament has hit a rocky patch in the Senate. The sticking for the Greens has been the removal of personal penalties of up to $1.05 million for law breaking banking and superannuation executives.

For a FAR refresher see our previous newsletter article HERE.

The Greens party is pushing for the inclusion of the individual penalties which was not a feature of the original coalition draft.  Since it has not got its way, it has since teamed with the opposition and other cross benchers to vote down the government’s legislation watering down superannuation expense disclosure laws.

The likelihood of executives breaking the law and then action being taken is remote if recent history is an indicator.  Even so, if the Greens are successful, executives would think twice about joining a FAR regulated financial services company and be subject to mandated remuneration deferral, malus and clawback and exposure to personal liability.

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