Module Application
What are the responsibilities of the accountability entity, significant related entity or accountable person under the Financial Accountability Regime?
Does the accountability entity or person understand and meet the accountability and personnel obligations that apply to it?
Does the accountable entity understand and meet the deferred remuneration obligations that apply to it?
Does the accountable entity understand and meet the core and enhanced notification obligations that apply to it?
Does an accountable entity, significant related entity or accountable person understand and meet the requirements relating to investigation and enforcement?
Module Scope
The Financial Accountability Module sets out the obligations of accountable entities, significant related entities and accountable persons under the Financial Accountability Regime.
The accountable entities to whom the obligations apply include:
- Authorised deposit-taking institutions (ADIs), and authorised non-operating holding companies (NOHCs) of ADIs
- General insurers, and authorised NOHCs of general insurers
- Life companies, and registered NOHCs of life companies
- Private health insurers
- Registrable superannuation entity (RSE) licensees
Accountable persons include the directors, and the most senior and influential executives, of accountable entities.
The Financial Accountability Regime imposes the following types of obligations:
- accountability obligations
- key personnel obligations
- notification obligations
- deferred numeration obligations
- obligations relating to investigations on accountable entities, significant related entities, accountable persons and other relevant persons
1. Accountability and Personnel Obligations
An accountable entity or accountable person must comply with the accountability and personnel obligations. This includes:
- acting with honesty and integrity, and with due skill, care and diligence
- dealing with the Regulator in an open, constructive and cooperative way
- preventing any adverse effects on its prudential standing or reputation
- ensuring that its accountable persons and significant related entities meet their obligations
- avoiding any contraventions of relevant legislation
- ensuring that the responsibilities of its accountable persons cover all parts of the operations of its group, and all other relevant responsibilities
- ensuring that no accountable person is prohibited from holding this position
- complying with directions given to it by the Regulator
- ensuring that each of its significant related entities complies with the relevant requirements
2. Deferred Remuneration
An accountable entity must comply with the deferred remuneration obligations. This includes complying with the requirements relating to variable remuneration payments, remuneration policies, and reduction amounts.
3. Notification
The accountable entity must comply with the core and enhanced notification obligations. This includes notifying the Regulator of required events, and ensuring that each of its significant related entities complies with the relevant requirements. It must also give the Regulator an accountability statement or accountability map as required, and notify the Regulator of any material changes in the statement or map in the required timeframe.
4. Investigations and Enforcement
The accountable entity, significant related entity or accountable person must comply with the investigation and enforcement requirements. It must give an investigator access to its books, accounts and documents, as well as any information and facilities needed to conduct the investigation and produce the report. It must comply with any notice given to it by an investigator, and adhere to the requirements relating to examinations. It must provide information to the Regulator on request, and comply with any direction issued by the Regulator, ensuring it does not disclose the fact that the direction was given.