POWERED BY MOMENTUM MEDIA
APRA narrows remuneration frame
|
The Australian Prudential Regulation Authority (APRA) has reacted to submissions received by the financial services industry and has narrowed the number of positions on which companies will have to make remuneration reports.
The regulator made clear that the new standards would not be applied solely to the banking industry and that they would be equally applicable to other prudentially regulated industries.
The regulator announced this week that while it was the intention that the remuneration requirements generally apply to senior management positions, it acknowledged that some regulated institutions held this to apply to a wider range of persons — and that this created a potential burden.
It said that under the narrower criteria, Board Remuneration Committees would now be required to make annual recommendations on CEOs, the direct reports of CEOs, persons performing the same or substantially the same functions and duties, and other persons whose activities may (in the Committee’s opinion) affect the financial soundness of an institution.
However, the regulator said it would be retaining the right to specify any other person to be subject to an individual recommendation from a Board Remuneration Committee to the Board.
APRA also made clear that just because an institution claimed to be satisfactorily regulated offshore would not absolve it from being subject to Australian jurisdiction.
Commenting on the changes, APRA executive member John Trowbridge said that while the regulator’s approach remained unchanged in principle, it had revised some aspects on the basis of the second round consultations.
AUTHOR
Mike Taylor
Recommended for you
APRA has warned retail super trustees that financial adviser involvement in recommending platform products does not diminish their obligations, as regulators turned the spotlight on the Shield Master Fund and First Guardian Master Fund during a meeting with fund CEOs.
AMP’s chief economist has unveiled a wish list for the Australian government’s Economic Reform Roundtable.
Australian retirees could increase their projected annual incomes between 3 and 51 per cent by incorporating personal and household data into their retirement income strategies, according to new research.
The best interests duty and new class of adviser didn't make the cut for the pre-election DBFO draft bill; however, ASFA has used its submission to outline what it wants to see from the final package.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
