FAR deferred remuneration arrangements (40% deferral 4 years)

FAR accountable persons must have 40% of variable remuneration deferred 4 years.

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Who must comply

FAR-regulated entities + accountable persons.

What triggers it

Being a FAR accountable person.

When due

Continuous; remuneration arrangements per FAR.

Evidence required

Remuneration agreement showing 40% deferral + 4-year period; consequences clause.

Max penalty

Civil penalties + APRA + ASIC enforcement

Summary

FAR Act 2023 requires deferred remuneration arrangements — at least 40% of accountable person's variable remuneration deferred for at least 4 years (banking + insurance + super entities). Variable remuneration can be reduced or forfeited for accountability breaches.

Enforced by

Source legislation

Industries

Topics

faraccountabilityremuneration

Source: https://apra.gov.au/financial-accountability-regime. Rules Mate is not a law firm. Always verify against the live regulator source before acting.