New prudential standard will focus on improving outcomes for
consumers.
In an effort to improve accountability, governance and risk
culture within the financial services industry, both the Australian
Prudential Regulation Authority (APRA) and the Australian
Securities and Investments Commission (ASIC) have been exploring
and developing regulatory measures to better align remuneration
with good conduct objectives.
Prior to the Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry (Royal Commission)
obligations were imposed on authorised deposit-taking institutions
(ADIs) under the Banking Executive Accountability Regime
(BEAR).
Following the Royal Commission there has been an unprecedented
increase in the level of regulatory activity on this topic, and
there have been steps taken to implement the recommendations and
observations of Commissioner Hayne with respect to compensation and
accountability of individuals at all
