5.3 — Revised prudential standards and guidance

In revising its prudential standards and guidance about the design and implementation of remuneration systems, APRA should: require APRA‑regulated institutions to design their remuneration systems to encourage sound management of non‑financial risks, and to reduce the risk of misconduct; require Read More …

5.1 — Supervision of remuneration — principles, standards and guidance

In conducting prudential supervision of remuneration systems, and revising its prudential standards and guidance about remuneration, APRA should give effect to the principles, standards and guidance set out in the Financial Stability Board’s publications concerning sound compensation principles and practices. Read More …

Recommendations – Culture, Governance and Remuneration

Recommendation 5.1 — Supervision of remuneration — principles, standards and guidance Recommendation 5.2 — Supervision of remuneration — aims Recommendation 5.3 — Revised prudential standards and guidance Recommendation 5.4 — Remuneration of front line staff Recommendation 5.5 — The Sedgwick Read More …

2.6 — General insurance and consumer credit insurance commissions

The review referred to in Recommendation 2.3 should also consider whether each remaining exemption to the ban on conflicted remuneration remains justified, including: the exemptions for general insurance products and consumer credit insurance products; and the exemptions for non‑monetary benefits Read More …

2.4 — Grandfathered commissions

Grandfathering provisions for conflicted remuneration should be repealed as soon as is reasonably practicable. Government Response The Government agrees to end grandfathering of conflicted remuneration effective from 1 January 2021. Grandfathered conflicted remuneration can entrench clients in older products even Read More …