BEAR Archives

Apr102018 by Connor JamesNo Comments

What is a small, medium or large ADI? Latest BEAR Update

The Banking Executive and Accountability Regime (BEAR) was passed into law in February of this year. We have talked about his law change several times before (see https://www.compliancequarter.com.au/1-july-2018-getting-prepared-banking-executive-accountability-regime-bear/). Today we look at the latest consultation from the Treasury consequent to that law change. This consultation looks at how the size of authorised deposit-taking institutions (ADIs) are to be defined for the purposes of BEAR. [caption id="attachment_4024" align="aligncenter" width="640"] Photo by Matthias Goetzke on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter. BEAR Update - Legislative Instruments under the BEAR The BEAR, like many Acts of Parliament, sets out a range of matters to be determined by future determination of Ministers or regulatory bodies. The BEAR provides that the relevant Minister (I.e. the Treasurer), as well as the Australian Prudential Regulation Authority…

Nov202017 by Connor James1 Comment

1 July 2018: Are you getting prepared for the Banking Executive Accountability Regime (BEAR)?

Financial Services

The Banking Executive Accountability Regime (BEAR) is shaping up to be the most significant piece of business-related legislation hitting this year. We have discussed the details of these reforms on a few occasions: Budget 2017 and financial services: an opening for the minnows and a warning for the sharks (https://compliancequarter.com.au/budget-2017/); The Banking Executive Accountability Regime (BEAR) Exposure Draft- Part One (https://compliancequarter.com.au/bear_part_1/); Banking Executive Accountability Regime Exposure Draft – Part Two (https://compliancequarter.com.au/banking-executive-accountability-regime-exposure-draft-part-two/). Photo by Scott Webb on Unsplash By Dr Drew Donnelly, Compliance Quarter. Since we discussed it last, the Treasury Laws Amendment (Banking Executive Accountability and Related Measures) Bill 2017 (the Bill) has been introduced to Parliament, passed through its initial stages in the House of Representatives, and been referred to the Senate Economics Legislation Committee (the Committee). The Committee has received public…

Oct162017 by Connor JamesNo Comments

Banking Executive Accountability Regime Exposure Draft – Part Two

Uncategorized

Last time in The Banking Executive Accountability Regime (BEAR) Exposure Draft - Part One we talked about the new role of an ‘accountable person’ under the proposed Banking Executive Accountability Regime (BEAR), as described in the Government’s recent exposure draft Bill. In today’s piece, part two, we look at the what happens when an accountable person, or the bank itself, fail to fulfil its obligations under BEAR. By Dr Drew Donnelly, Compliance Quarter Existing Powers of APRA The Australian Prudential Regulation Authority (APRA) already has a range of powers that it uses to ensure Authorised Deposit-Taking Institutions (ADIs) (including banks) fulfil their responsibilities under the prudential supervision requirements. APRA’s current powers include: the power of direction (section 11CA of the Banking Act 1959), which enables APRA to require a…

Oct132017 by Connor JamesNo Comments

The Banking Executive Accountability Regime (BEAR) Exposure Draft- Part One

Uncategorized

In May we talked about the Government’s Budget commitment to a new Banking Executive Accountability Regime (BEAR) in Budget 2017 and financial services: an opening for the minnows and a warning for the sharks. We talked there about proposals requiring registration of banking executives, the reining in of executive bonuses and disqualification for poor behaviour. These proposals require legislation in order to amend the Banking Act 1959 and the Treasury consulted on an ‘exposure draft’ of that legislation at the end of last month (September). Today is the first part of a two-part examination of that exposure draft (henceforth all section references are to that exposure draft Bill). Our focus today is on the new concept of an ‘accountable person’ which will be introduced in order to hold banking executives…