In the 2017-18 Budget, the Government announced that it would legislate to introduce a new Banking Executive Accountability Regime (BEAR). The BEAR, which will make ADIs and their most senior executives and directors accountable for meeting heightened standards of behaviour in line with community expectations, received Royal Assent on 20 February 2018.
The legislation includes a power for the Minister to make a legislative instrument defining small, medium and large ADIs, in order to set out how particular obligations of the BEAR will apply. Particular elements of the BEAR will apply differently depending on ADI’s size, including the commencement date, deferral of variable remuneration and the maximum civil penalty for breaching the BEAR.
This consultation seeks stakeholder views on the draft legislative instrument. As indicated in the explanatory memorandum to the BEAR legislation, the 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; and
- a large ADI would be any ADI with greater than or equal to $100 billion on a three year average of total resident assets.
No submissions are currently available.