FAR deferred remuneration arrangements (40% deferral 4 years)
FAR accountable persons must have 40% of variable remuneration deferred 4 years.
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
Related obligations
- CWLTHComply with Financial Accountability Regime (FAR) accountability obligationsBanking entities from 15 March 2024; insurers and super trustees from 15 March 2025.
- CWLTHTwo-strikes rule on listed-company remuneration report (s 250R)If a remuneration report attracts 25%+ no votes twice running, a spill resolution must be considered.
Frequently asked questions
- Who must comply with FAR deferred remuneration arrangements (40% deferral 4 years)?
- FAR-regulated entities + accountable persons.
- What triggers FAR deferred remuneration arrangements (40% deferral 4 years)?
- Being a FAR accountable person.
- When is FAR deferred remuneration arrangements (40% deferral 4 years) due?
- Continuous; remuneration arrangements per FAR.
- What is the maximum penalty for FAR deferred remuneration arrangements (40% deferral 4 years)?
- Civil penalties + APRA + ASIC enforcement
- What evidence is required for FAR deferred remuneration arrangements (40% deferral 4 years)?
- Remuneration agreement showing 40% deferral + 4-year period; consequences clause.
Source: https://apra.gov.au/financial-accountability-regime. Rules Mate is not a law firm. Always verify against the live regulator source before acting.