ASIC and APRA Launch Consultation To Streamline Financial Accountability Regime Reporting

Key Takeaways

• ASIC and APRA have jointly opened consultation on proposed amendments to simplify FAR reporting obligations, including removing key functions requirements and direct report disclosures from accountability maps.
• Compliance teams at banks, superannuation funds, and insurers should review the proposals now, as changes are expected to be finalized by end of 2026 and take effect in early 2027.

Deep Dive

This consultation represents a joint regulatory effort by ASIC and APRA to reduce the administrative burden associated with the Financial Accountability Regime without weakening core accountability standards. For compliance teams at accountable entities, the proposed changes signal a meaningful reduction in ongoing reporting obligations, particularly around accountability maps, which are a central compliance artifact under FAR.

The key substantive changes include removing the requirement to report "key functions" under the FAR regulator rules and eliminating the need to disclose accountable persons' direct reports within accountability maps. According to regulator estimates, these changes will reduce reporting obligations for all accountable entities and approximately 4,500 accountable persons, and are expected to halve the frequency of accountability map updates—a significant operational relief for large, complex organizations with frequent personnel or structural changes.

Timing is an important consideration: this is currently a consultation, not a finalized rule change. Subject to feedback, ASIC and APRA intend to finalize the changes by the end of 2026, with implementation from early 2027. This gives compliance teams a window of several months to engage with the consultation process and prepare for eventual transition, but also means current FAR reporting obligations remain in effect until the new rules take hold.

Compliance professionals should take several concrete steps: (1) review current accountability map processes and identify where key functions and direct report information are embedded in internal systems and templates; (2) consider submitting feedback to the consultation, particularly if current reporting burdens are disproportionate to supervisory value; (3) begin scoping potential system and process changes needed to reflect simplified reporting once rules are finalized; and (4) monitor related APRA and ASIC publications for the release of draft regulatory instruments.

From a risk perspective, this is a low-risk, business-friendly development overall, but entities should be cautious not to prematurely wind down existing accountability mapping processes before the rules are finalized. There is also a transitional risk in managing two reporting regimes (current and future) during the 2026–2027 period, requiring careful change management and documentation to avoid gaps in accountability coverage during the transition.

Source: Australian Securities and Investments Commission