On 2 September 2026, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) released a consultation letter on two proposals to streamline the administration of the Financial Accountability Regime (FAR). The proposals involve:
- removing the requirement on accountable entities to assign prescribed key functions to accountable persons and record the assignments in the FAR register
- removing the requirement on accountable entities that meet the relevant enhanced notification threshold to include information on accountable persons’ direct reports in accountability maps.
APRA and ASIC estimate that the changes will reduce reporting for approximately 4,500 accountable persons and halve the number of updates required to accountability maps.
The consultation is open until 2 October 2026. Written submissions must be sent to PolicyDevelopment@apra.gov.au.
The proposals form part of APRA and ASIC’s ongoing focus on reducing unnecessary regulatory burden on industry while maintaining strong regulatory outcomes. For further background on the broader package of reforms proposed by APRA and ASIC, see our article APRA and ASIC announce welcome reforms to the Financial Accountability Regime.
What APRA and ASIC propose
APRA and ASIC are consulting on the following amendments to the Financial Accountability Regime (Information for register) Regulator Rules 2024 (Cth) (FAR Regulator Rules) and Information Paper Financial Accountability Regime: Information for accountable entities (updated 11 July 2024) (FAR Information Paper) to implement the proposals:
- FAR Regulator Rules
- All provisions relating to the concept of key functions will be removed. This change will result in the FAR Regulator Rules no longer prescribing key functions for inclusion in the FAR register under section 40(4)(g) of the Financial Accountability Regime Act 2023 (Cth).
- FAR Information Paper
- All references to the concept of key functions will be removed, with section 3.4 (Assigning key functions to accountable persons) and Appendix A (Key Functions descriptions) deleted in their entirety.
- Section 4.2.2 (Enhanced entities—Accountability map) currently includes the following statement:
“In particular, the Regulators expect an accountability map would include reporting lines to and from each accountable person.” (emphasis added)
APRA and ASIC propose to replace the statement with the following:
“In particular, the Regulators expect an accountability map to include, for each accountable person, the person to whom they report (their ‘reporting line’).” (emphasis added)
- Consequential amendments will be made to remove any suggestions that an accountability map or statement should include details of reporting lines to accountable persons.
The consultation letter includes the following table summarising the proposed changes rationale:
Current requirement/guidance | Proposed change | APRA/ASIC rationale | Consultation document |
The Financial Accountability Regime (Information for register) Regulator Rules 2024 (Cth) prescribe key functions as prescribed information for inclusion in the Register of accountable persons. | Key functions will no longer be prescribed information. | Key functions may assist contextual understanding but are not necessary to identify accountable persons or their areas of accountability. Removing these requirements will reduce reporting provided by accountable persons. | |
The current Information Paper Financial Accountability Regime: Information for accountable entities sets out the regulators’ expectation that reporting lines to an accountable person are included in accountability maps. | APRA and ASIC will no longer expect that reporting lines to accountable persons will be included in accountability maps. This will reduce ongoing notification requirements for enhanced entities. | Reporting lines to accountable persons provide organisational context but are not essential to understanding FAR accountability. Reporting lines to an accountable person can change regularly. Removing this information from accountability maps should reduce the number of notifications of material changes. |
APRA and ASIC have invited submissions addressing the following questions:
- Will the proposed changes materially reduce the time and costs of FAR reporting obligations and ongoing compliance? Please provide a quantitative estimate of time and cost impact where possible.
- Will the proposed changes weaken or otherwise affect accountability? If so, how?
- Are there any unintended consequences of the proposed changes?
- Are there any other areas APRA and ASIC could provide further clarity on or reduce regulatory burden?
Feedback from the consultation will inform the final changes to the FAR Regulator Rules and FAR Information Paper, which are planned for release in late 2026.
APRA and ASIC expect the changes to take effect from early 2027.
APRA and ASIC’s simplification initiative
The proposals also reflect commitments in APRA’s and ASIC’s 2026-27 Corporate Plans signal a commitment to simplifying regulation to reduce the burden on industry. This consultation is a welcome first step in translating those commitments into practical changes for regulated institutions.
Removing the prescriptive requirement to allocate regulator-set key functions recognises that banks, insurers and superannuation funds operate differently across market segments, and that the regulatory framework should accommodate those differences rather than impose a uniform model.
The proposed changes are a positive step towards reducing the administrative burden while preserving the elements of the FAR that support clear individual accountability and effective governance.
Looking ahead
In addition to these proposals to streamline FAR administration, the Australian Government plans to consult on reforms to the FAR legislation through a Treasury consultation process.
We encourage APRA and ASIC to use this consultation as an opportunity to consider other areas of FAR administration that could be simplified without compromising the objectives of the FAR. The first phase of the United Kingdom’s reforms to the Senior Managers and Certification Regime (the UK equivalent of the FAR), finalised in April 2026, may provide a useful reference for identifying further opportunities to streamline and simplify the FAR.
Further streamlining of the FAR is necessary, particularly given the time, cost and complexity associated with internal FAR reviews being undertaken by regulated entities. Further reform should place greater weight on proportionality while preserving the regulators’ ability to supervise and enforce the regime effectively.
Entities subject to the FAR should begin considering how the proposed changes may affect their current compliance processes. Entities should:
- review the draft revised FAR Regulator Rules and FAR Information Paper to understand how the proposed changes may affect their accountability framework and practices
- identify opportunities to streamline existing governance arrangements and processes and reduce compliance costs once the proposed changes take effect
- consider making a submission or providing input to their trade association’s submission to APRA and ASIC on the proposals in the consultation letter and the additional consultation questions by 2 October 2026
- continue monitoring the upcoming Treasury consultation on reforms to the FAR legislation flagged in the consultation letter, which may result in further changes to the FAR.
Please contact us if you need assistance with your FAR compliance arrangements or a FAR-related investigation.