The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) plan to narrow some obligations under the Financial Accountability Regime (FAR).
The move aims to cut compliance workload while maintaining existing accountability standards.
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The regulators propose to remove key functions requirements from FAR rules, lift the materiality threshold for notification of changes in accountability and stop the requirement for details of accountable persons’ direct reports in accountability maps.
ASIC and APRA estimate the measures will reduce reporting for all FAR entities and around 4,500 accountable individuals. Changes to accountability map rules are expected to at least halve the number of updates companies must lodge.
APRA will also consult on removing all reporting obligations under its fit and proper regime.
ASIC plans to simplify responsible manager requirements for FAR entities holding Australian financial services licences. This will involve reducing evidence-of-competence submissions from October 2026. Around 2,000 current licensees are expected to benefit.
APRA member Therese McCarthy Hockey said: “The changes announced today get the balance right, allow entities to get on with running their businesses, and reinforce APRA’s commitment to proportionality.”
The regulators will consult on the package and aim to implement the changes by the end of 2026. They will also support the government’s legislative amendments to the FAR.
ASIC Commissioner Kate O’Rourke explained that the proposals are consistent with the organisation’s ongoing simplification agenda.
“Through our simplification work, we are focused on reducing regulatory burden while maintaining consumer protections, and that is what these reforms achieve,” O’Rourke added.
The measures contribute to the government’s Better Regulation reforms announced in the 2026–27 Budget.
Proposed legislative changes to the FAR would mean entities provide accountability statements and maps only on request, rather than upfront, and would be given more time to register accountable persons.
ASIC and APRA’s initiatives also feed into a broader Council of Financial Regulators’ action programme aimed at improving data collection, along with its sharing and use across the system.
