FAR is a regulatory framework that holds senior executives and directors of financial institutions, including insurers, accountable for their conduct and responsibilities through registration and accountability obligations.
The Financial Accountability Regime (FAR) commenced in March 2024. It replaced the Banking Executive Accountability Regime (BEAR) and extended accountability requirements to insurance and superannuation sectors.
Directors, senior executives, and anyone with significant influence over the institution. These are called accountable persons and must be registered with APRA.
FAR creates a clear line of accountability from frontline practices to executive leadership.
A Chief Risk Officer was held accountable under FAR when systemic claims handling delays were found to result from inadequate oversight of the claims department they supervised
An insurer's accountability map clearly designated the Chief Operating Officer as responsible for complaints handling, making them answerable when APRA identified deficiencies in the process
Following a data breach, the Chief Information Security Officer faced scrutiny under FAR regarding whether they had taken reasonable steps to implement adequate cybersecurity measures
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