ASIC and APRA should jointly administer the BEAR. ASIC should be charged with overseeing those parts of Divisions 1, 2 and 3 of Part IIAA of the Banking Act that concern consumer protection and market conduct matters. APRA should be charged with overseeing the prudential aspects of Part IIAA.
The Government agrees to extend the BEAR to all APRA regulated entities, including insurers and superannuation RSEs. Further, the Government will introduce a similar regime for non‑prudentially regulated financial firms focused on conduct.
The Royal Commission has demonstrated that serious governance and accountability failings extend beyond Authorised Deposit‑taking Institutions and beyond prudential matters. The Government is committed to ensuring that senior individuals who operate in the financial sector conduct themselves in an appropriate manner and face consequences where they fail to meet these standards.
The new ASIC‑administered accountability regime will apply to AFSL and ACL holders, market operators, and clearing and settlement facilities. Like the BEAR, individuals with specified functions (including senior executives) will be registered and have explicit obligations related to the conduct of the entity. Financial entities will also have an obligation to deal with APRA and ASIC (as the case may be) in an open, constructive and co‑operative way.
Treasury will consult on how this new ASIC‑administered accountability regime will be implemented, including any practical changes to support proper administration of the respective regimes between APRA and ASIC, such as a clear ability to share and use information.