FSC urges consultation around the ‘unprecedented’

The Federal Government’s Bank Executive Accountability Regime is without precedent and the Government will need to be careful to avoid unintended consequences, according to the Financial Services Council (FSC).

In a column to be published in the upcoming print edition of Super Review, the FSC’s senior policy manager, Blake Briggs reinforced calls by the organisation’s chief executive, Sally Loane, for significant industry consultation around the new regime.

Briggs pointed to the detail of the proposed – a requirement for a minimum of 40 per cent of an approved deposit-taking Institution (ADI) executive’s variable remuneration – and 60 per cent for certain executives such as the CEO – to be deferred for a minimum period of four years to ensure executives are more accountable; and stronger powers for APRA to require ADIs to review and adjust their remuneration policies when the Australian Prudential Regulation Authority (APRA) believes such policies are producing inappropriate outcomes.

Related News:

He also pointed out that the remuneration measures would apply to non-ADI businesses within an ADI group structure, including superannuation funds and life insurance businesses.

“Stand-alone superannuation funds not in a group structure will not be captured by the package, with the exception of APRA’s increased powers to disqualify directors and executives,” Briggs said.

“The FSC has urged the Government to consult with industry before implementation of the Bank Executive Accountability Regime. These powers are without precedent and unintended consequences must be carefully avoided.”




Related Content

O’Dwyer awaiting PC on ‘opt-in’ versus ‘opt-out’

The Minister for Revenue and Financial Services, Kelly O’Dwyer has acknowledged that the Government’s next steps on both “opt-out” and “opt-...more

Default fund selection vital for consumer protection

The Australian Institute of Superannuation Trustees (AIST) has welcomed the digitisation of superannuation choice forms, which will allow consumers to...more

Link in major UK acquisition

Australia’s dominant superannuation administration company, the publicly-listed Link Group has entered into a major UK acquisition.The company annou...more

Author

Comments

Comments

lol at the FSC it really just does go to the show who lines their pockets..

Add new comment