APRA and ASIC Consult on Streamlining FAR Administration Requirements

Key Takeaways

• APRA and ASIC have jointly launched a consultation on proposed changes to simplify administration under the Financial Accountability Regime (FAR), releasing draft revised Regulator Rules and an updated FAR information paper.
• Compliance teams at all FAR-covered entities should review the proposals and consider submitting feedback before the October 2, 2026 deadline, as final changes are expected to take effect from early 2027.

Deep Dive

This consultation represents a coordinated effort by APRA and ASIC to reduce the administrative burden associated with complying with the Financial Accountability Regime, which applies to accountable entities across the banking, insurance, and superannuation sectors. The proposed changes focus specifically on the information and reporting requirements entities must satisfy for the FAR register, suggesting regulators have identified opportunities to simplify current processes without diminishing accountability standards.

The key documents open for consultation include a draft revised version of the Financial Accountability Regime (Information for Register) Regulator Rules 2024, provided in both clean and marked-up formats to allow stakeholders to clearly identify proposed amendments. Similarly, a draft revised FAR information paper has been released, also in clean and marked-up versions, which will serve as updated guidance once finalized. The marked-up versions are particularly valuable for compliance teams conducting gap analysis, as they highlight exactly what is changing from the current framework.

Timing is critical: the consultation window is narrow, open from September 2 to October 2, 2026 (just one month), after which APRA and ASIC will review feedback and release final changes in late 2026. Importantly, entities should note that the effective date for implementation is anticipated to be early 2027, giving a relatively short runway between finalization and operational compliance once rules are confirmed.

Compliance professionals at FAR-covered entities should treat this as an opportunity to influence the final rules and should prioritize a thorough review of both draft documents, particularly the marked-up versions, to understand the practical implications for register information management and reporting workflows. Entities should consider whether the proposed changes affect existing policies, procedures, or systems used to compile and submit FAR register data, and should prepare internal feedback for submission within the consultation period. Entities wishing to keep any part of their submission confidential must explicitly state this in writing, as APRA's default policy is public disclosure of submissions.

From a risk perspective, this update carries moderate but manageable operational risk. While the changes are described as "streamlining" rather than expanding obligations, any amendment to regulatory rules requires entities to reassess internal compliance frameworks, update documentation, and potentially retrain staff involved in accountability mapping and register maintenance. Early engagement with the consultation process can help organizations shape practical, workable final rules and ensure smoother implementation ahead of the 2027 effective date.

Source: Australian Prudential Regulation Authority