{"id":"F2024L00283","name":"Financial Accountability Regime (Minister) Rules 2024","slug":"financial-accountability-regime-minister-rules-2024","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442304,"registerId":"F2024L00283-fast-fetch-1775957348650","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Financial Accountability Regime (Minister) Rules 2024","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: FAR Rules v43.42\n---\n\n![Commonwealth coat of arms of Australia](image.001.jpeg)\n\n \n\nFinancial Accountability Regime (Minister) Rules 2024\n\nI, Stephen Jones, Assistant Treasurer and Minister for Financial Services, make the following rules.\n\nSigned    5 March 2024\n\n \n\nStephen Jones\n\nAssistant Treasurer  Minister for Financial Services\n\n \n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1  Name \n\n2  Commencement\n\n3  Authority\n\n4  Definitions\n\nPart 2—Accountable persons—prescribed responsibilities and positions\n\n5  Prescribed responsibilities for accountable entities other than foreign accountable entities and NOHCs—all sectors\n\n6  Prescribed positions for accountable entities other than foreign accountable entities and NOHCs—all sectors\n\n7  Prescribed responsibilities for accountable entities other than foreign accountable entities and NOHCs—insurance\n\n8  Prescribed responsibilities for accountable entities that are RSE licensees\n\n9  Prescribed responsibilities for accountable entities that are foreign accountable entities\n\n10  Prescribed responsibilities for accountable entities that are NOHCs\n\n11  Prescribed positions for accountable entities that are NOHCs\n\n12  Relationship between sections in this Part\n\nPart 3—Accountable entities—enhanced notification threshold\n\nDivision 1—Accountable entities that are ADIs\n\n13  Determining when accountable entity meets enhanced notification threshold—ADIs\n\n14  Relevant final report—ADIs\n\n15  Total assets value—ADIs\n\nDivision 2—Accountable entities that are general insurers\n\n16  Determining when accountable entity meets enhanced notification threshold—general insurers\n\n17  Final report—general insurers\n\n18  Total assets value—general insurers\n\nDivision 3—Accountable entities that are life companies\n\n19  Determining when accountable entity meets enhanced notification threshold—life companies\n\n20  Final report—life companies\n\n21  Total assets value—life companies\n\nDivision 4—Accountable entities that are private health insurers\n\n22  Determining when accountable entity meets enhanced notification threshold—private health insurers\n\n23  Final report—private health insurers\n\n24  Total assets value—private health insurers\n\nDivision 5—Accountable entities that are RSE licensees\n\n25  Determining when accountable entity meets enhanced notification threshold—RSE licensees\n\n26  Final report—RSE licensees\n\n27  Total assets value—RSE licensees\n\nDivision 6—Accountable entities that are in the same corporate group\n\n28  Related accountable entity also taken to meet enhanced notification threshold\n\nDivision 7—Miscellaneous\n\n29  Reporting Standards\n\nPart 4—Miscellaneous\n\n30  Evidentiary use of certain material—manner of authentication of examination record\n\nPart 5—Application and transitional provisions\n\n31  Application provision—total assets value\n\nPart 1—Preliminary\n\n \n\n1  Name\n\n  This instrument is the Financial Accountability Regime (Minister) Rules 2024.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument 15 March 2024. 15 March 2024\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under the Financial Accountability Regime Act 2023.\n\n4  Definitions\n\nNote: Expressions have the same meaning in this instrument as in the Financial Accountability Regime Act 2023 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n  In this instrument:\n\neligible foreign life insurance company means an eligible foreign life insurance company (within the meaning of the Life Insurance Act 1995) that is registered under section 21 of the Life Insurance Act 1995.\n\nfinal report:\n\n (a) in relation to an accountable entity that is an ADI—see section 14; or\n\n (b) in relation to an accountable entity that is a general insurer—see section 17; or\n\n (c) in relation to an accountable entity that is a life company—see section 20; or\n\n (d) in relation to an accountable entity that is a private health insurer—see section 23; or\n\n (e) in relation to an accountable entity that is an RSE licensee—see section 26.\n\nforeign ADI has the same meaning as in the Banking Act 1959.\n\nforeign general insurer has the same meaning as in the Insurance Act 1973.\n\nrelevant final report, in relation to an accountable entity that is an ADI—see section 14.\n\nReporting Standard: see section 29.\n\nthe Act means the Financial Accountability Regime Act 2023.\n\ntotal assets value:\n\n (a) in relation to an accountable entity that is an ADI—see section 15; or\n\n (b) in relation to an accountable entity that is a general insurer—see section 18; or\n\n (c) in relation to an accountable entity that is a life company—see section 21; or\n\n (d) in relation to an accountable entity that is a private health insurer—see section 24; or\n\n (e) in relation to an accountable entity that is an RSE licensee—see section 27.\n\nPart 2—Accountable persons—prescribed responsibilities and positions\n\n \n\n5  Prescribed responsibilities for accountable entities other than foreign accountable entities and NOHCs—all sectors\n\n (1) For the purposes of paragraph 10(2)(b) of the Act, each of the responsibilities listed in subsection (2) are prescribed in relation to an accountable entity that is:\n\n (a) one of the following:\n\n (i) an ADI;\n\n (ii) a general insurer;\n\n (iii) a life company;\n\n (iv) a private health insurer;\n\n (v) an RSE licensee; and\n\n (b) not a foreign accountable entity.\n\nNote: An individual is an accountable person, in relation to an accountable entity, where they hold a position in, or relating to, that entity and because of that position has a prescribed responsibility.\n\n (2) Each of the following responsibilities, relating to the accountable entity, are prescribed:\n\n (a) senior executive responsibility for management or control of the business activities of the accountable entity and its significant related entities (if any);\n\n (b) senior executive responsibility for management or control of the accountable entity’s:\n\n (i) financial resources; or\n\n (ii) operations;\n\n (c) senior executive responsibility for management of the accountable entity’s overall risk controls or overall risk management arrangements;\n\n (d) senior executive responsibility for management of the accountable entity’s information management (including information technology systems);\n\n (e) senior executive responsibility for management of the accountable entity’s:\n\n (i) internal audit function; or\n\n (ii) compliance function; or\n\n (iii) human resource function; or\n\n (iv) dispute resolution function (whether internal or external, or both);\n\n (f) senior executive responsibility for management of the accountable entity’s client or member remediation programs (including hardship arrangements);\n\n (g) senior executive responsibility for management of the accountable entity’s breach reporting;\n\n (h) if the accountable entity is a reporting entity for the purposes of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006—senior executive responsibility for management of the accountable entity’s anti‑money laundering function.\n\n (3) For the purposes of subsection (2), a person does not have senior executive responsibility for management of an activity or function merely because the person is carrying out the activity or function.\n\n6  Prescribed positions for accountable entities other than foreign accountable entities and NOHCs—all sectors\n\n (1) For the purposes of subsection 10(3) of the Act, the positions covered by subsection (2) are prescribed in relation to an accountable entity that is:\n\n (a) one of the following:\n\n (i) an ADI;\n\n (ii) a general insurer;\n\n (iii) a life company;\n\n (iv) a private health insurer;\n\n (v) an RSE licensee; and\n\n (b) not a foreign accountable entity.\n\n (2) The positions of members of the board of directors (or equivalent) of the accountable entity are prescribed.\n\n7  Prescribed responsibilities for accountable entities other than foreign accountable entities and NOHCs—insurance\n\n (1) For the purposes of paragraph 10(2)(b) of the Act, each of the responsibilities listed in subsection (2) are also prescribed in relation to an accountable entity that is:\n\n (a) one of the following:\n\n (i) a general insurer;\n\n (ii) a life company;\n\n (iii) a private health insurer; and\n\n (b) not a foreign accountable entity.\n\n (2) Each of the following responsibilities, relating to the accountable entity, are prescribed:\n\n (a) senior executive responsibility for management of the accountable entity’s actuarial function;\n\n (b) senior executive responsibility for management of the accountable entity’s claims handling function.\n\n (3) For the purposes of subsection (2), a person does not have senior executive responsibility for management of an activity or function merely because the person is carrying out the activity or function.\n\n8  Prescribed responsibilities for accountable entities that are RSE licensees\n\n (1) For the purposes of paragraph 10(2)(b) of the Act, each of the responsibilities listed in subsection (2) are also prescribed in relation to an RSE licensee.\n\n (2) Each of the following responsibilities, relating to an RSE licensee, are prescribed:\n\n (a) senior executive responsibility for management of the RSE licensee’s member administration operations;\n\n (b) senior executive responsibility for management of the RSE licensee’s investment function;\n\n (c) senior executive responsibility for management of the RSE licensee’s financial advice service;\n\n (d) senior executive responsibility for management of the RSE licensee’s insurance offerings.\n\n (3) For the purposes of subsection (2), a person does not have senior executive responsibility for management of an activity or function merely because the person is carrying out the activity or function.\n\n9  Prescribed responsibilities for accountable entities that are foreign accountable entities\n\n (1) For the purposes of paragraph 10(2)(b) of the Act, each of the responsibilities listed in subsection (2) are prescribed in relation to a foreign accountable entity.\n\n (2) Each of the following responsibilities, relating to a foreign accountable entity, are prescribed:\n\n (a) senior executive responsibility for conduct of the activities of a branch of the foreign accountable entity that is operating in Australia;\n\n (b) if the foreign accountable entity is a foreign ADI or a foreign general insurer—responsibility for overseeing the operation of a branch operating in Australia as a senior officer outside Australia with delegated authority from the board of directors (or equivalent) of the foreign accountable entity;\n\n (c) if the foreign accountable entity is an eligible foreign life insurance company—responsibility for oversight of the foreign accountable entity as a member of its Compliance Committee for the purposes of section 16ZF of the Life Insurance Act 1995;\n\n (d) if the foreign accountable entity is a foreign general insurer—responsibility as an agent in Australia for the purposes of section 118 of the Insurance Act 1973.\n\n10  Prescribed responsibilities for accountable entities that are NOHCs\n\n (1) For the purposes of paragraph 10(2)(b) of the Act, each of the responsibilities listed in subsection (2) are prescribed in relation to an accountable entity that is:\n\n (a) an authorised NOHC of an ADI; or\n\n (b) an authorised NOHC of a general insurer; or\n\n (c) a registered NOHC of a life company.\n\n (2) Each of the following responsibilities, relating to the accountable entity, are prescribed:\n\n (a) senior executive responsibility for management or control of the business activities of the accountable entity and its significant related entities (if any);\n\n (b) senior executive responsibility for management or control of the accountable entity’s financial resources;\n\n (c) senior executive responsibility for management of the accountable entity’s overall risk controls or overall risk management arrangements;\n\n (d) senior executive responsibility for management of the accountable entity’s internal audit function.\n\n (3) For the purposes of subsection (2), a person does not have senior executive responsibility for management of an activity or function merely because the person is carrying out the activity or function.\n\n11  Prescribed positions for accountable entities that are NOHCs\n\n (1) For the purposes of subsection 10(3) of the Act, the positions covered by subsection (2) are prescribed in relation to an accountable entity that is:\n\n (a) an authorised NOHC of an ADI; or\n\n (b) an authorised NOHC of a general insurer; or\n\n (c) a registered NOHC of a life company.\n\n (2) The positions of members of the board of directors (or equivalent) of the accountable entity is prescribed.\n\n12  Relationship between sections in this Part\n\n  Unless expressly provided otherwise, no section in this Part is intended to limit the operation of any other section in this Part.\n\nPart 3—Accountable entities—enhanced notification threshold\n\nDivision 1—Accountable entities that are ADIs\n\n13  Determining when accountable entity meets enhanced notification threshold—ADIs\n\n (1) Under subsection 31(3) of the Act, this section sets out how to determine when an accountable entity (other than a foreign accountable entity) that is an ADI meets the enhanced notification threshold.\n\n (2) The accountable entity meets the threshold at a particular time during a financial year of the entity if the entity’s total assets value, as reported in the entity’s relevant final report, exceeds $20 billion.\n\nNote: If an accountable entity meets the enhanced notification threshold under this subsection, any other accountable entity that is related to the first accountable entity is also taken to meet the enhanced notification threshold: see section 28.\n\n14  Relevant final report—ADIs\n\n (1) Subject to subsections (2) and (3), the accountable entity’s relevant final report is the most recent final report submitted by the entity to APRA under any of the following:\n\n (a) Reporting Standard ARS 322.0 Statement of Financial Position (Consolidated);\n\n (b) Reporting Standard ARS 323.0 Statement of Financial Position (Licensed ADI);\n\n (c) Reporting Standard ARS 720.0 ABS/RBA Statement of Financial Position.\n\n (2) If the most recent final report was submitted under ARS 323.0 or ARS 720.0, and the entity previously submitted a final report under ARS 322.0 in relation to the same financial year—the entity’s relevant final report is the final report submitted under ARS 322.0.\n\n (3) If the most recent final report was submitted under ARS 720.0, and the entity previously submitted a final report under ARS 323.0 in relation to the same financial year (but did not previously submit a final report in relation to the same financial year under ARS 322.0)—the entity’s relevant final report is the final report submitted under ARS 323.0.\n\nNote: See also section 29 of this instrument about Reporting Standards.\n\n (4) In this section, a final report for the accountable entity means a report in relation to the reporting period for a financial year of the entity that includes the last day of that financial year.\n\n15  Total assets value—ADIs\n\n (1) The total assets value in a relevant final report of the accountable entity is determined in accordance with this section.\n\n (2) If the report is under Reporting Standard ARS 322.0 Statement of Financial Position (Consolidated), the total assets value is the amount reported in Section A, item 12 Total assets in Form ARF 322.0 in that Reporting Standard.\n\n (3) If the report is under Reporting Standard ARS 323.0 Statement of Financial Position (Licensed ADI), the total assets value is the amount reported in Section A, item 11 Total assets in Form ARF 323.0 in that Reporting Standard.\n\n (4) If the report is under Reporting Standard ARS 720.0 ABS/RBA Statement of Financial Position and Form ARF 720.0A in that Reporting Standard, the total assets value is the amount reported in Section A, item 13 Total Assets including intra-group assets in Form ARF 720.0A in that Reporting Standard.  \n\n (5) If the report is under Reporting Standard ARS 720.0 ABS/RBA Statement of Financial Position and Form ARF 720.0B in that Reporting Standard, the total assets value is the amount reported in Section A, item 13 Total assets including intra‑group assets in Form ARF 720.0B in that Reporting Standard.\n\nDivision 2—Accountable entities that are general insurers\n\n16  Determining when accountable entity meets enhanced notification threshold—general insurers\n\n (1) Under subsection 31(3) of the Act, this section sets out how to determine when an accountable entity (other than a foreign accountable entity) that is a general insurer meets the enhanced notification threshold.\n\n (2) The accountable entity meets the threshold at a particular time during a financial year of the entity if the entity’s total assets value, as reported in the entity’s most recent final report, exceeds $10 billion.\n\nNote: If an accountable entity meets the enhanced notification threshold under this subsection, any other accountable entity that is related to the first accountable entity is also taken to meet the enhanced notification threshold: see section 28.\n\n17  Final report—general insurers\n\n  A final report, for the accountable entity, means a report submitted by the entity to APRA under Reporting Standard GRS 300.0 Statement of Financial Position for the reporting period for a financial year of the entity that includes the last day of that financial year.\n\nNote: See also section 29 of this instrument about Reporting Standards.\n\n18  Total assets value—general insurers\n\n  The total assets value in a final report of the accountable entity is the amount reported in item 15 Total assets in Reporting Standard GRS 300.0 Statement of Financial Position.\n\nDivision 3—Accountable entities that are life companies\n\n19  Determining when accountable entity meets enhanced notification threshold—life companies\n\n (1) Under subsection 31(3) of the Act, this section sets out how to determine when an accountable entity (other than a foreign accountable entity) that is a life company meets the enhanced notification threshold.\n\n (2) The accountable entity meets the threshold at a particular time during a financial year of the entity if the entity’s total assets value, as reported in the entity’s most recent final report, exceeds $10 billion.\n\nNote: If an accountable entity meets the enhanced notification threshold under this subsection, any other accountable entity that is related to the first accountable entity is also taken to meet the enhanced notification threshold: see section 28.\n\n20  Final report—life companies\n\n  A final report, for the accountable entity, means a report submitted by the entity to APRA under Reporting Standard LRS 300.0 Statement of Financial Position for the reporting period for a financial year of the entity that includes the last day of that financial year.\n\nNote: See also section 29 of this instrument about Reporting Standards.\n\n21  Total assets value—life companies\n\n  The total assets value in a final report of the accountable entity is the amount reported in item 15 Total assets in Reporting Standard LRS 300.0 Statement of Financial Position.\n\nDivision 4—Accountable entities that are private health insurers\n\n22  Determining when accountable entity meets enhanced notification threshold—private health insurers\n\n (1) Under subsection 31(3) of the Act, this section sets out how to determine when an accountable entity that is a private health insurer meets the enhanced notification threshold.\n\n (2) The accountable entity meets the threshold at a particular time during a financial year of the entity if the entity’s total assets value, as reported in the entity’s most recent final report, exceeds $3 billion.\n\nNote: If an accountable entity meets the enhanced notification threshold under this subsection, any other accountable entity that is related to the first accountable entity is also taken to meet the enhanced notification threshold: see section 28.\n\n23  Final report—private health insurers\n\n  A final report, for the accountable entity, means a report submitted by the entity to APRA under Reporting Standard HRS 300.0 Statement of Financial Position for the reporting period for a financial year of the entity that includes the last day of that financial year.\n\nNote: See also section 29 of this instrument about Reporting Standards.\n\n24  Total assets value—private health insurers\n\n  The total assets value in a final report of the accountable entity is the amount reported in item 15 Total assets in Reporting Standard HRS 300.0 Statement of Financial Position.\n\nDivision 5—Accountable entities that are RSE licensees\n\n25  Determining when accountable entity meets enhanced notification threshold—RSE licensees\n\n (1) Under subsection 31(3) of the Act, this section sets out how to determine when an accountable entity that is an RSE licensee meets the enhanced notification threshold.\n\n (2) The accountable entity meets the threshold at a particular time during a financial year of the entity if the entity’s total assets value, as reported in the entity’s most recent final report, exceeds $30 billion.\n\nNote: If an accountable entity meets the enhanced notification threshold under this subsection, any other accountable entity that is related to the first accountable entity is also taken to meet the enhanced notification threshold: see section 28.\n\n26  Final report—RSE licensees\n\n  A final report, for the accountable entity, means a report submitted by the entity to APRA under Reporting Standard SRS 320.0 Statement of Financial Position for the reporting period for a financial year of the entity that includes the last day of that financial year.\n\nNote: See also section 29 of this instrument about Reporting Standards.\n\n27  Total assets value—RSE licensees\n\n  The total assets value in a final report of the accountable entity is worked out in accordance with the following method:\n\nMethod statement\n\nStep 1. For each registrable superannuation entity of which the entity is an RSE licensee, identify the amount reported in item 11 Total assets in Form SRF 320.0 in Reporting Standard SRS 320.0 Statement of Financial Position.\n\nStep 2. Add together each of the amounts identified under step 1.\n\nDivision 6—Accountable entities that are in the same corporate group\n\n28  Related accountable entity also taken to meet enhanced notification threshold\n\n (1) Under subsection 31(3) of the Act, this section sets out an additional way to determine when an accountable entity meets the enhanced notification threshold if:\n\n (a) an accountable entity (the first accountable entity) meets the enhanced notification threshold at a particular time during a financial year of the first accountable entity under subsection 13(2), 16(2), 19(2), 22(2) or 25(2); and\n\n (b) the first accountable entity is related to another accountable entity that is not a foreign accountable entity (the second accountable entity); and\n\n (c) at that time, the second accountable entity does not otherwise meet the enhanced notification threshold under this Part of the instrument (other than this section).\n\n (2) The second accountable entity is taken to meet the enhanced notification threshold at the same time the first accountable entity meets the threshold.\n\nDivision 7—Miscellaneous\n\n29  Reporting Standards\n\n (1) If a provision (the referring provision) of this instrument refers, in relation to a final report for an accountable entity, to a Reporting Standard with a particular identifier, the referring provision is taken to refer to the version of the Reporting Standard with that identifier that applied to the entity in relation to that report because of a determination made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\nExample: Reporting Standard ARS 323.0 Statement of Financial Position (Licensed ADI).\n\n (2) However, if that Reporting Standard has been superseded by a more recent Reporting Standard with a different identifier:\n\n (a) subsection (1) applies as if the referring provision referred instead to the more recent Reporting Standard; and\n\n (b) any reference to particular material in the superseded Reporting Standard is taken to refer instead to the corresponding material in the more recent Reporting Standard.\n\n (3) In this section:\n\nidentifier means a combination of letters and numbers (with or without punctuation marks, and whether or not followed by a title).\n\nPart 4—Miscellaneous\n\n \n\n30  Evidentiary use of certain material—manner of authentication of examination record\n\n  For the purposes of subsection 54(7) of the Act, a manner of authentication of a written record of an examination, mentioned in that subsection, that meets all of the following, is specified:\n\n (a) the written record is produced as soon as practicable after the conclusion of the examination;\n\n (b) the written record is endorsed by a person (the endorser) other than the person examined at the examination;\n\n (c) the endorser:\n\n (i) was present throughout the examination; and\n\n (ii) read and endorsed the written record as soon as practicable after it was produced;\n\n (d) the endorsement:\n\n (i) is to the effect that the record is a true record of what was said in the examination; and\n\n (ii) is signed and dated by the endorser.\n\nPart 5—Application and transitional provisions\n\n \n\n31  Application provision—total assets value\n\nFor the purposes of Part 3, in working out the total assets value of an accountable entity, the relevant final report for the purposes of Division 1 of that Part, and the final report for the purposes of Divisions 2 to 5 of that Part, may be for a financial year that starts or ends:\n\n (a) before the commencement of this instrument; or\n\n (b) before the time when the accountable entity became an accountable entity.\n\nExample: The financial year for an ADI starts on 1 November. Under subsection 13(2) of this instrument, the ADI meets the enhanced notification threshold if the ADI’s relevant final report for 2022‑23 reports a total asset value that exceeds $20 billion.\n\nNote: For when a body corporate starts being an accountable entity, see subsections 9(2) and (4) of the Act.\n","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"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its original intent as delegated legislation under the Financial Accountability Regime Act 2023. It operationalises the primary Act by prescribing specific responsibilities, positions, and thresholds as anticipated by the parent legislation. No significant scope creep is evident — the rules stick to the technical implementation of accountability mapping and threshold calculation without expanding into new policy areas."},"complexity_factors":["Multiple parallel regulatory schemes with different asset thresholds ($20b for banks, $10b for insurers, $3b for health insurers, $30b for super funds)","Extensive cross-referencing to external APRA Reporting Standards (ARS, GRS, LRS, HRS, SRS series) with version control rules in section 29","Nested conditional logic for determining 'relevant final reports' — section 14 has a three-tier fallback system (ARS 322.0 → ARS 323.0 → ARS 720.0)","Sector-specific variations: 5 different calculation methods for 'total assets value' across Divisions 1-5","Group entity provisions (section 28) create related-party deeming rules that trigger enhanced obligations across corporate structures","Defined terms rely heavily on primary legislation (FAR Act 2023) and other Acts (Banking Act 1959, Insurance Act 1973, Life Insurance Act 1995, Superannuation Industry (Supervision) Act 1993)","Foreign entity carve-outs and special rules (sections 9, 10, 11) create parallel but reduced obligation frameworks"],"plain_english_summary":"These rules implement the Financial Accountability Regime, making senior executives and directors at large banks, insurers, super funds, and related entities personally accountable for misconduct and failures in their areas. By defining who is “accountable,” setting which firms face enhanced oversight, and tightening evidence and reporting requirements, the regime gives APRA and ASIC stronger powers to fire, fine, or ban individuals — increasing corporate responsibility and protecting consumers and the broader financial system."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"These rules implement and operationalise the Financial Accountability Regime Act 2023 by specifying the positions, responsibilities and numeric asset thresholds that trigger individual accountability and enhanced notifications. They do not expand the statutory reach beyond the powers the Act grants the Minister; rather, they fill in sectoral and measurement details (e.g. which APRA report items to use, how to treat related entities). While the instrument clarifies and in some respects broadens coverage by explicitly including NOHCs and foreign‑branch roles and by creating a group‑level capture mechanism (section 28), those elements fall within the Act’s remit to prescribe persons and thresholds and therefore do not amount to a material change of scope beyond the Act’s original design."},"complexity_factors":["Multiple sector‑specific divisions (ADIs, general insurers, life companies, private health insurers, RSE licensees) each with distinct thresholds and reporting rules (Parts 3 Divs 1–5)","Numerous prescribed responsibilities across sectors (sections 5, 7, 8, 10) requiring role‑mapping","Several external cross‑references to APRA Reporting Standards with item‑level mappings (sections 14–15, 17–18, 20–21, 23–24, 26–27, 29)","Conditional selection logic for the \"relevant final report\" in section 14 (hierarchy of reporting standards)","Group contagion rule that imports related entities into scope (section 28)","Defined terms that point to other statutes and instruments (the Act, Banking Act, Insurance Act, Life Insurance Act) increasing legal cross‑referencing (section 4)","Transitional/application provision permitting use of earlier financial years for threshold calculations (section 31)","Detailed procedural specification for authentication of examination records (section 30)"],"plain_english_summary":"**What this instrument does (mechanically)**\n\n- Sets out which senior roles and responsibilities make an individual an \"accountable person\" under the Financial Accountability Regime Act 2023 (the Act) (Part 2: sections 5–11). Board members (or equivalent) are expressly prescribed positions for most covered entities (sections 6, 11).\n- Prescribes sector‑specific lists of senior responsibilities that trigger individual accountability for: authorised deposit‑taking institutions (ADIs), general insurers, life insurers, private health insurers, registrable superannuation entity (RSE) licensees, foreign accountable entities, and non‑operating holding companies (NOHCs) (sections 5–11).\n- Sets the asset‑based thresholds that make an entity subject to the Act’s enhanced notification obligations, and explains how to calculate those asset amounts from APRA reporting (Part 3, Divisions 1–5):\n  - ADIs: total assets > $20 billion (section 13, with reporting mapping in sections 14–15).\n  - General insurers: > $10 billion (sections 16–18).\n  - Life companies: > $10 billion (sections 19–21).\n  - Private health insurers: > $3 billion (sections 22–24).\n  - RSE licensees: > $30 billion (sections 25–27).\n- Provides that if one related accountable entity meets an enhanced threshold, other non‑foreign related accountable entities in the same corporate group are also taken to meet it (section 28).\n- Ties the relevant asset figures to specific APRA Reporting Standards and explains how to treat superseded Reporting Standards (section 29 and the sector divisions).\n- Specifies an approved method for authenticating a written record of an examination for evidentiary use (section 30).\n- Includes an application/transitional rule allowing use of final reports for financial years that start or end before this instrument’s commencement (section 31).\n\n**Who is affected**\n\n- Individuals holding board positions or senior executive roles with the prescribed responsibilities in sections 5–11 for ADIs, insurers, life companies, private health insurers, RSE licensees, NOHCs and foreign accountable entities. (These individuals are the \"accountable persons\" who will have duties and potential regulatory consequences under the Act.)\n- The corporate entities themselves (the accountable entities) that must: identify accountable persons, monitor asset thresholds (Part 3), and comply with enhanced notification and other FAR obligations once captured.\n- APRA and regulated entities that submit the referenced Reporting Standards — because the rules use APRA reports to determine thresholds (sections 14–15, 17–18, 20–21, 23–24, 26–27, 29).\n\n**Why it matters (official purpose and practical effects)**\n\n- Official purpose (as implemented): to operationalise the Act by specifying which roles and responsibilities attract individual accountability and by setting clear, sector‑specific asset thresholds and methods for measuring them so the enhanced notification regime can be applied consistently (Parts 2–3). The rules also create evidentiary certainty for examination records (section 30) and provide transitional clarity (section 31).\n\n- Practical effects and how they work mechanically:\n  - Who decides: the Minister (under the Act) prescribes roles and thresholds by this instrument; APRA supplies the reporting data that determines whether thresholds are met (sections 3, 14–15, 29).\n  - Who pays / bears costs: accountable entities and the individuals they nominate bear compliance costs — identifying and documenting accountable persons, tracking assets against thresholds using APRA reports, changing governance or reporting arrangements, and preparing for enhanced notifications and potential investigations or enforcement actions (see sections 5–11 and Part 3).\n  - Behaviour likely to change: firms will need to map internal roles to the prescribed responsibilities; boards may reassess delegation and reporting lines; groups may reorganise legal structures or internal reporting to manage who is captured by the thresholds. Because the rules make a related entity automatically captured if one group member exceeds a threshold (section 28), group structuring decisions have direct regulatory consequences.\n\n**Costs, incentives, trade‑offs and implementation risks (mechanical testing of the instrument’s effects)**\n\n- Compliance burden and administrative costs: Multiple prescribed senior responsibilities (e.g. risk, finance, operations, IT, audit, compliance, remediation, AML functions — section 5(2) and related sections) require firms to review job descriptions, governance documents and delegation frameworks to identify accountable persons. Boards are explicitly included (sections 6, 11).\n\n- Measurement and operational reliance on APRA reporting: Thresholds are keyed to specific APRA Reporting Standards and particular items within those reports (e.g. \"Total assets\" line items in ARS/GRS/LRS/HRS/SRS reporting — sections 15, 18, 21, 24, 27). Changes to reporting standards are handled by cross‑reference rules in section 29, but this creates ongoing dependency on APRA’s data definitions and any determinative choices under the Financial Sector (Collection of Data) Act 2001.\n\n- Group‑level capture and contagion effect: The rule that related non‑foreign entities are taken to meet enhanced thresholds when a group member does (section 28) creates a mechanical contagion: a single large subsidiary can bring multiple legal entities within the enhanced notification regime even where the other legal entities do not exceed thresholds on a stand‑alone basis.\n\n- Potential substitution effects: Because the instrument hinges on legal entity asset totals, firms may have incentives to alter legal form or redistribute assets among entities to avoid crossing thresholds. The rules do not directly block such restructuring; they instead use APRA reporting to detect capture (sections 13–27).\n\n- Clarity vs. edge cases: The instrument provides detailed mappings for most common APRA report types and special rules for RSE licensees (aggregate of registrable superannuation entities — section 27). Nonetheless, the need to pick a ‘‘relevant final report’’ (and the tie‑breaking hierarchy in section 14 for ADIs) introduces conditional logic that will require operational guidance in ambiguous cases.\n\n**Concentrated benefits and diffuse costs (mechanics only)**\n\n- Concentrated benefits: Regulators and large entities gain certainty about which positions are captured and how thresholds are measured (sections 5–11, Part 3). This reduces ambiguity for enforcement and supervisory action.\n\n- Diffuse costs: A broader set of firms just under thresholds, plus individual senior officers across many entities, will bear compliance costs (sections 5–11; Part 3). The rules do not themselves provide transitional exemptions beyond the reporting‑year flexibility in section 31.\n\n**Implementation / compliance points to watch**\n\n- Entities must map internal roles to the prescribed responsibilities (see the long lists in sections 5–11) and document why a person does or does not hold a ‘‘senior executive responsibility’’ (the instrument clarifies that simply carrying out a function does not by itself create a prescribed responsibility — e.g. sections 5(3), 7(3), 8(3), 10(3)).\n- The asset thresholds are determined from specific APRA report items: firms need systems to extract those exact line items (sections 15, 18, 21, 24, 27).\n- Group‑level effects (section 28) mean corporate groups need a group‑wide compliance view, not just entity‑level tracking.\n\n**Key provisions cited**: sections 5–11 (who/which responsibilities and positions are prescribed); sections 13–28 (asset thresholds and related‑entity capture); section 29 (how referenced APRA Reporting Standards are treated); section 30 (authentication of examination records); section 31 (application/transitional rule)."}},"importantCases":[],"_links":{"self":"/api/acts/financial-accountability-regime-minister-rules-2024","history":"/api/acts/financial-accountability-regime-minister-rules-2024/history","analysis":"/api/acts/financial-accountability-regime-minister-rules-2024/analysis","conflicts":"/api/acts/financial-accountability-regime-minister-rules-2024/conflicts","importantCases":"/api/acts/financial-accountability-regime-minister-rules-2024/important-cases","documents":"/api/acts/financial-accountability-regime-minister-rules-2024/documents"}}