BEAR replaced — wider, sharper
Financial Accountability Regime (FAR) hub
FAR replaced the Banker Executive Accountability Regime (BEAR) for ADIs in March 2024 and extends to insurers and RSE licensees from 15 March 2026. Every accountable person mapped to every accountability — with personal civil and criminal exposure.
⏰ Insurers + RSE licensees: 15 March 2026
The Financial Accountability Regime Act 2023 makes named senior executives personally accountable for the conduct of APRA-regulated entities. ADIs have been live since 15 March 2024; insurers (general, life, private health) and RSE licensees (super fund trustees) come into scope on 15 March 2026.
Each accountable entity must register accountable persons with APRA + ASIC, map each person to a specific set of accountabilities, hold back a portion of variable remuneration (the 'deferred remuneration' rule), and notify regulators of breaches within 30 days. Civil penalties up to ~$1.65M per individual breach; criminal offences for false statements.
Practical operating model: nominate accountable persons (CEO + key direct reports + business-unit leads), map each accountability matrix to the org chart, sign accountability statements, build a breach detection + 30-day notification process. FAR sits alongside CPS 230 (operational risk) and CPS 511 (remuneration) — the three together are APRA's executive-accountability stack.
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FAQ
Who is an 'accountable person' under FAR?
A senior executive with actual or effective authority over a significant or substantial part of the entity. CEO and direct reports are almost always included; below that the line is drawn by influence + accountability, not job title.
When does FAR apply to me?
ADIs: in force since 15 March 2024. Insurers (general, life, private health) and RSE licensees (super fund trustees): 15 March 2026. APRA-regulated NOHCs are also in scope.
What is the deferred remuneration rule?
Accountable entities must defer at least 40% of an accountable person's variable remuneration for a minimum of 4 years (or 60% over 4 years for the CEO of a significant entity). Deferral can be reduced or clawed back for breaches.
What are the notification obligations?
Notify APRA + ASIC within 30 days of: appointing or dismissing an accountable person; a breach of an accountability obligation; a material change in accountability statements; a reduction or clawback of deferred remuneration.
What's the difference between FAR and BEAR?
FAR is wider (covers insurers + RSE licensees, not just ADIs), sharper (joint APRA + ASIC administration vs APRA-only), and tougher on individual liability. The accountability statement framework is largely carried over from BEAR but with refined definitions.
What are the maximum penalties?
Individuals: up to ~$1.65M per civil penalty contravention + criminal offences for false statements. Entities: up to the greater of $16.5M, 3× benefit obtained, or 10% of annual turnover (capped at ~$575M).
How does FAR interact with CPS 230 and CPS 511?
FAR maps accountability to named individuals. CPS 230 sets the operational risk + service-provider framework those individuals are accountable for. CPS 511 sets the remuneration architecture (including the deferral rules FAR enforces). All three commence (or extend) in 2024-2026 as an integrated executive-accountability stack.
Do non-executive directors count as accountable persons?
Generally no. FAR targets the executive layer — accountable persons hold executive authority. NEDs remain bound by general directors' duties (Corporations Act ss 180-184) but aren't typically named accountable persons under FAR.
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