6.8 — Extending the BEAR

Over time, provisions modelled on the BEAR should be extended to all APRAregulated financial services institutions. APRA and ASIC should jointly administer those new provisions.

Government Response

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 nonprudentially regulated financial firms focused on conduct.

The Royal Commission has demonstrated that serious governance and accountability failings extend beyond Authorised Deposittaking 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 ASICadministered 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 cooperative way.

Treasury will consult on how this new ASICadministered 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.