{"id":"F2019L00823","name":"Banking (executive accountability regime) determination No. 1 of 2019","slug":"banking-executive-accountability-regime-determination-no-1-of-2019","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":99437,"registerId":"commonwealth-F2019L00823-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Banking (executive accountability regime) determination No. 1 of 2019","content":"![](image.001.png)\n\nBanking (executive accountability regime) determination No. 1 of 2019\n\nStructure neutral apportionment of remuneration\n\nBanking Act 1959\n\nI, Pat Brennan, delegate of APRA, under paragraph 37EA(4)(b) of the Banking Act 1959 (the Act) DETERMINE that the kinds of remuneration set out in the Schedule are not variable remuneration.\n\nThis instrument commences on 1 July 2019.\n\nDated: 12 June 2019\n\n\\[Signed\\]\n\nPat Brennan\n\nExecutive General Manager\n\nPolicy and Advice Division\n\nInterpretation\n\nIn this Determination:\n\nAPRA means the Australian Prudential Regulation Authority.\n\n  \n\nSchedule – kinds of remuneration that are not variable remuneration\n\n    In relation to an accountable person of an ADI or its subsidiary, where the ADI is not a foreign ADI – any amount of remuneration that:\n\n    (a) is paid or payable to the accountable person by a related body corporate of the ADI or subsidiary;\n    (b) relates only to the accountable person holding a position in one or more related bodies corporate of the ADI or subsidiary; and\n    (c) the related bodies corporate referred to in (a) or (b) are not ADIs or subsidiaries of ADIs.\n\n    Note: Paragraph 1 does not apply to any amount of remuneration that is paid or payable to an accountable person by a non-ADI holding company of an ADI or of a subsidiary of an ADI, where the remuneration relates only to the accountable person holding a position in the non-ADI holding company. This is because subsection 37E(3) of the Act already excludes such an amount from being remuneration of an accountable person.\n\n    2. In relation to an accountable person of a foreign ADI – any amount of remuneration that:\n    (a) is paid or payable to the accountable person by the foreign ADI or a related body corporate of the foreign ADI; and\n    (b) relates only to:\n    (i) the activities of the foreign ADI outside of Australia; or\n    (ii) the accountable person holding a position in a non-ADI related body corporate of the foreign ADI.","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"This determination narrows what counts as variable remuneration by specifying exclusions within the statutory framework; it interprets and applies the Act rather than changing the Act’s statutory scope. It expressly complements the exclusion already noted in subsection 37E(3) of the Banking Act."},"complexity_factors":["Short, single-purpose instrument that simply excludes specified payments from the Act’s definition of variable remuneration.","Depends on statutory cross-references and APRA delegation (paragraph 37EA(4)(b) of the Banking Act).","Different tests for domestic ADIs versus foreign ADIs (separate Schedule paragraphs), adding some branching logic.","Relies on corporate-structure terms (\"related body corporate\", \"non-ADI holding company\") whose scope is determined elsewhere in law and by accounting/payroll practice.","Practical complexity in implementation: allocating pay across group entities, documenting that remuneration \"relates only\" to non-ADI roles or overseas activities.","Interaction with subsection 37E(3) (noting an existing exclusion) creates potential for interpretive overlap needing administrative guidance."],"plain_english_summary":"This determination says certain payments are not \"variable remuneration\" under the Banking Act, so pay from related non-ADI entities or pay for activities outside Australia will generally fall outside APRA’s variable-remuneration rules for accountable persons of ADIs and foreign ADIs. It changes how banks and their corporate groups must treat and report remuneration, shifting where firms can locate pay and reducing the amount of pay subject to deferral, clawback and other variable-remuneration compliance. APRA issued it under s37EA(4)(b)."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This Determination performs exactly the narrow technical function it was designed for: specifying remuneration exclusions under paragraph 37EA(4)(b) of the Banking Act 1959. It has not expanded beyond its original purpose of implementing the BEAR's remuneration apportionment rules."},"complexity_factors":["Short instrument (2 substantive paragraphs plus interpretation)","Only 1 defined term (APRA)","Heavy reliance on external statutory definitions (ADI, accountable person, variable remuneration, related body corporate, foreign ADI) which are not defined in this instrument","Nested conditional logic in paragraph 1 (three cumulative conditions: (a), (b), and (c))","Cross-reference to subsection 37E(3) of the Banking Act 1959 in the Note","Dual regime structure (separate rules for domestic ADIs vs foreign ADIs)"],"plain_english_summary":"This APRA Determination narrows what counts as \"variable remuneration\" under the BEAR by excluding certain payments from related entities that relate solely to non‑banking roles or activities outside Australia. \n\nIt affects accountable executives at ADIs and foreign banks with split group roles, preventing non‑bank or overseas pay being treated as bank variable pay and subject to deferral — keeping BEAR’s reach focused on banking‑related compensation."}},"importantCases":[],"_links":{"self":"/api/acts/banking-executive-accountability-regime-determination-no-1-of-2019","history":"/api/acts/banking-executive-accountability-regime-determination-no-1-of-2019/history","analysis":"/api/acts/banking-executive-accountability-regime-determination-no-1-of-2019/analysis","conflicts":"/api/acts/banking-executive-accountability-regime-determination-no-1-of-2019/conflicts","importantCases":"/api/acts/banking-executive-accountability-regime-determination-no-1-of-2019/important-cases","documents":"/api/acts/banking-executive-accountability-regime-determination-no-1-of-2019/documents"}}