subscribe to our newsletter

Government consults on BEAR regime

The federal government has released further information on how the Banking Executive Accountability Regime will be implemented.

Legislated by the Turnbull government in February, BEAR imposes higher standards of behaviour on banks and their senior executives and directors.

Treasurer Scott Morrison has now announced the release of a new legislative instrument within the Banking Executive Accountability Regime bill, which will be used to determine compliance obligations and the size of penalties imposed on non-compliant banks. 

The government is also seeking feedback on how to define small, medium and large authorised deposit-taking institutions (ADIs).

According to Mr Morrison, the new draft legislative instrument provides that:

  • a small ADI would have less than or equal to $10 billion on a three-year average of total resident assets
  • a medium ADI would have between $10 billion and $100 billion on a three-year average of total resident assets
  • a large ADI would be any ADI with greater than or equal to $100 billion on a three-year average of total resident assets

The BEAR bill, which passed in February, was designed to increase standards of behaviour on banks and their senior executives by introducing compliance obligations, enforced by the Australian Prudential Regulation Authority (APRA), that “will apply differently based on the ADI’s size”.

The bill will commence for large ADIs in July 2018 and for small and medium-sized ADIs in July 2019.

Further, the deferral of variable remuneration obligations for bank executives, and the nature of civil penalties imposed on lenders that breach obligations, will also vary depending on the size of the ADI.

Consultation submissions close on 20 April 2018.

[Related: APRA empowered as BEAR bill swiftly becomes law]



Government consults on BEAR regime

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The IMF has urged Australia to consider reforms around housing supply and lending standards, citing apprehension around the upsurge in prope...

Treasurer Josh Frydenberg has backed the net-zero emissions by 2050 target, warning failure to comply will hurt banks’ access to capital a...

The regulator is set to release information setting out how it would use macroprudential policy tools, after expressing concerns around the ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.