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Erschienen in:

2022 | OriginalPaper | Buchkapitel

20. The BEAR – Bank Executive Accountability Regime – And APRA’S Non-Financial Risk Accountabilities

verfasst von : Francesco de Zwart

Erschienen in: The Key Code and Advanced Handbook for the Governance and Supervision of Banks in Australia

Verlag: Springer Nature Singapore

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Abstract

Chapter 20 examines the BEAR – Bank Executive Accountability Regime – and APRA’s non-financial risk accountabilities.

This begins by reviewing the meanings of the terms ADI and the obligations of accountable persons. We then examine BEAR accountability obligations of an ADI and an accountable person including governance variables for accountability obligations and ‘reasonable steps’. The key personnel obligations of an ADI are reviewed and the corresponding governance variables provided for. We move then to the deferred remuneration obligations of an ADI and governance variables including those for the meaning of variable remuneration, the minimum amount of variable remuneration and the minimum period of deferral. Section 37F governs the notification obligations of an ADI and governance variables for an ‘Accountability Statement’ and an ‘Accountability Map’. The pecuniary penalty for non-compliance with the BEAR is provided for by section 37FC including the meaning of the terms ‘prudential matters’ and ‘resolution’. There follows registration of accountable persons and disqualification of accountable persons.

The chapter concludes with APRA’s improvements for non-financial risk accountabilities not being clear, cascaded and enforced (NFRAccFail).

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Vorheriges Kapitel FSRC Final Report Commentary and Recommendations in Relation to Remuneration

Nächstes Kapitel APRA Revised Draft Prudential Standard CPS 511 Remuneration

Being PART IIAA – THE BANKING EXECUTIVE ACCOUNTABILITY REGIME, Banking Act 1959 (Cth), ss 37 – 37KC accessed 28 February 2019, available at http://classic.austlii.edu.au/au/legis/cth/consol_act/ba195972/index.html#s37g, (the ‘BEAR’). The Australian Treasury announced in a Proposals Paper of 22 January 2020 that it proposed to extend the BEAR to other APRA regulated entities in the insurance and superannuation industries with the introduction of the Financial Accountability Regime (FAR). See Australian Government, The Treasury, Proposal Paper, Implementing Royal Commission Recommendations 3.9, 4.12, 6.6, 6.7 and 6.8 Financial Accountability Regime, accessed 17 February 2020, available at https://treasury.gov.au/sites/default/files/2020-01/c2020-24974.pdf. See Attachment A – Summary of changes from the BEAR to the FAR, pp. 11–13. The Government intends to introduce legislation by the end of 2020 to implement the FAR. See Proposal Paper, Next steps, p 3.

Francesco de Zwart, Enhancing Firm Sustainability Through Governance, The Relational Corporate Governance Approach, Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing, Corporations, Globalisation and the Law Series, July 2015, (‘Stage 1’).

For Stage 1, see also, Francesco de Zwart, “Enhancing firm sustainability through governance – Part 1: The challenge of corporate governance” (2018) 33(2) Aust Jnl of Corp Law 144 and Francesco de Zwart, “Enhancing firm sustainability through governance – Part 2: The framework of the relational corporate governance approach” (2019) 34(1) Aust Jnl of Corp Law 27.

Transparency and Timing of Reporting – Monitoring Effect. See discussion in section 9.1.2.1 of Stage 1, ibid., pp. 262–263.

See discussion in section 2.6.5 of Stage 1, ibid., pp. 47–51.

See discussion in section 2.6.7 of Stage 1, ibid., pp. 51–58.

Board – Director Skills ‘Mix’ – see Figure 7.2 and discussion in section 7.3.1.2.1 of Stage 1, ibid., pp. 198–201.

Board Independent Director: Executive Director Proportion – Monitoring Effect – see discussion in sections 7.3.2.1.1–7.3.2.1.2 of Stage 1, ibid., pp. 208–212.

See discussion in section 2.6.2 of Stage 1, ibid., pp. 41–43.

See discussion in section 2.6.8 of Stage 1, ibid., pp. 54–59.

See discussion in section 2.6.2 of Stage 1, ibid., pp. 41–43.

Transparency and Timing of Reporting – Monitoring Effect. See discussion in section 9.1.2.1 of Stage 1, ibid., pp. 262–263.

See discussion in section 2.6.2 of Stage 1, ibid., pp. 41–43.

Transparency and Timing of Reporting – Monitoring Effect. See discussion in section 9.1.2.1 of Stage 1, ibid., pp. 262–263.

See discussion in section 2.6.2 of Stage 1, ibid., pp. 41–43.

The Australian Treasury announced in a Proposals Paper of 22 January 2020 that it proposed to extend the BEAR to other APRA regulated entities in the insurance and superannuation industries with the introduction of the Financial Accountability Regime (FAR). See Australian Government, The Treasury, Proposal Paper, Implementing Royal Commission Recommendations 3.9, 4.12, 6.6, 6.7 and 6.8 Financial Accountability Regime, accessed 17 February 2020, available at https://treasury.gov.au/sites/default/files/2020-01/c2020-24974.pdf. See Attachment A – Summary of changes from the BEAR to the FAR, pp. 11–13. The Government intends to introduce legislation by the end of 2020 to implement the FAR. See Proposal Paper, Next steps, p 3. Accountability Statements and Accountability Maps will remain obligations of the FAR. See Proposal Paper, Accountability maps and statements, p 7 and Attachment A, p 12.

Transparency and Timing of Reporting – Monitoring Effect. See discussion in section 9.1.2.1 of Stage 1, above n 2, pp. 262–263.

See discussion in section 2.6.2 of Stage 1, above n 2, pp. 41–43.

Transparency and Timing of Reporting – Monitoring Effect. See discussion in section 9.1.2.1 of Stage 1, above n 2, pp. 262–263.

See discussion in section 2.6.2 of Stage 1, above n 2, pp. 41–43.

Transparency and Timing of Reporting – Monitoring Effect. See discussion in section 9.1.2.1 of Stage 1, above n 2, pp. 262–263.

See discussion in section 2.6.2 of Stage 1, above n 2, pp. 41–43.

Australian Prudential Regulation Authority (APRA), Information Paper, Self-Assessments of Governance, Accountability and Culture, 22 May 2019, accessed 5 June 2019, available at https://www.apra.gov.au/sites/default/files/information_paper_self-assessment_of_governance_accountability_and_culture.pdf, (APRA Information Paper 2019’),p 17.

Transparency and Timing of Reporting – Monitoring Effect. See discussion in section 9.1.2.1 of Stage 1, above n 2, pp. 262–263.

See discussion in section 2.6.5 of Stage 1, above n 2, pp. 47–51.

See discussion in section 2.6.7 of Stage 1, above n 2, pp. 51–58.

Board – Director Skills ‘Mix’ – see Figure 7.2 and discussion in section 7.3.1.2.1 of Stage 1, above n 2, pp. 198–201.

Board Independent Director: Executive Director Proportion – Monitoring Effect – see discussion in sections 7.3.2.1.1–7.3.2.1.2 of Stage 1, above 2, pp. 208–212.

See discussion in section 2.6.2 of Stage 1, above n 2, pp. 41–43.

See discussion in section 2.6.8 of Stage 1, above n 2, pp. 54–59.

See discussion in section 2.6.2 of Stage 1, above n 2, pp. 41–43.

APRA Information Paper 2019, above n 22, p 17.

Ibid.

Ibid. p 18.

Ibid.

Ibid, p 19.

Titel: The BEAR – Bank Executive Accountability Regime – And APRA’S Non-Financial Risk Accountabilities
verfasst von: Francesco de Zwart
Verlag: Springer Nature Singapore
Buch: The Key Code and Advanced Handbook for the Governance and Supervision of Banks in Australia
Print ISBN: 978-981-16-1709-6

Electronic ISBN: 978-981-16-1710-2

Copyright-Jahr: 2022
DOI: https://doi.org/10.1007/978-981-16-1710-2_20

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