The Financial Accountability Regime (FAR) Bill was first introduced into Parliament in 2021 to replace and extend the existing Banking Executive Accountability Regime, following the recommendations of the Hayne royal commission into financial services.

It is yet to become law after going through various debates and amendments under the former and current governments.

The FAR Bill was reintroduced to Parliament on 8 March 2023 and remained largely unchanged. However, an addition proposed by Senator David Pocock and adopted by the government amended the 2023 FAR Bill to clarify the scope of a Minister’s power of exemption and to include the provision of Parliamentary oversight for the exercise of such power. You can read the second reading speech, in which the Assistant Treasurer notes the Pocock amendment, HERE.

We have discussed the FAR Bill in our previous article HERE.

• The FAR Bill was reintroduced to the House of Representatives on 8 March 2023.
• On 21 March 2023 the second reading was debated and read.
• On 22 March 2023 the third reading was agreed to.
• The FAR Bill was then introduced and read a first time to the Senate on 22 March 2023.

The FAR Bill had not been considered by the time of the finish of Parliamentary sittings on 30 March. It is understood that the FAR Bill will not be considered until sometime after the Senate resumes on 9 May.

The FAR will apply to the banking industry six months after the Act (once passed) receives Royal Assent and to the insurance and superannuation industries 18 months after Royal Assent.

No doubt, the regulators, APRA and ASIC, will be of the view that affected companies will have had plenty of time to implement all necessary processes and procedures for compliance with FAR once in force!

You can follow the status of the FAR Bill as it progresses through the Senate HERE.

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