This bill became law on Sep 14th, 2023.
Budget, tax & economy
Banking will move from the old Banking Executive Accountability RegimeThe older bank-only accountability system that is being replaced once the new regime starts for banking. to the new Financial Accountability RegimeThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. six months after the new regime starts, with the old banking-only rules then repealed.
The new Financial Accountability RegimeThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. would have left outdated banking-only rules and gaps in how APRAThe regulator that supervises banks, insurers and superannuation institutions and can enforce parts of this regime. and ASICThe market and consumer regulator that will share oversight of the regime with APRA. share information, enforce licences and report investigations. This bill updates other laws so the new regime can replace BEARThe older bank-only accountability system that is being replaced once the new regime starts for banking. and work across banking, insurance and superannuation.
Banks were already covered by the Banking Executive Accountability RegimeThe older bank-only accountability system that is being replaced once the new regime starts for banking., but the government moved to replace that bank-only system with the wider Financial Accountability RegimeThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. for banking, insurance and superannuation, which meant other laws also had to be updated so APRAThe regulator that supervises banks, insurers and superannuation institutions and can enforce parts of this regime. and ASICThe market and consumer regulator that will share oversight of the regime with APRA. could share information, protect sensitive material, use licence powers and report investigations consistently. After Parliament passed the package in September 2023, implementation did not run exactly to the original timetable, with regulators confirming in February 2024 that full bank enforcement would be delayed while the rules were finalised and then warning super funds in March 2024 to prepare for enforcement when the regime reached them in 2025.
The main criticism was that the bill helped set up an accountability regime that was too weak because it did not include personal civil penalties or million-dollar fines for senior bankers who breach the rules. That argument was raised mainly by the Greens, while the Coalition said it would support the bill and did not oppose its passage.
Stephen Jones MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 14 Sept 2023
Final passage
Passed without a counted vote
1 recorded amendment or procedural vote was found, but no counted vote on the bill itself was recorded.
Passage speed
190 days
From introduction to the latest recorded parliamentary step
Meaning
Banking will move from the old Banking Executive Accountability RegimeThe older bank-only accountability system that is being replaced once the new regime starts for banking. to the new Financial Accountability RegimeThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. six months after the new regime starts, with the old banking-only rules then repealed.
APRAThe regulator that supervises banks, insurers and superannuation institutions and can enforce parts of this regime. and ASICThe market and consumer regulator that will share oversight of the regime with APRA. can share information gathered for the Financial Accountability RegimeThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. so they can jointly oversee banks, insurers and superannuation entities more effectively.
Documents and information ASICThe market and consumer regulator that will share oversight of the regime with APRA. gets under the Financial Accountability RegimeThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. are shielded from Freedom of InformationThe public access system that this bill limits for some information held by ASIC under the regime. release, matching existing secrecy protection for APRAThe regulator that supervises banks, insurers and superannuation institutions and can enforce parts of this regime.-held material.
A breach of the Financial Accountability RegimeThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. can now be used by APRAThe regulator that supervises banks, insurers and superannuation institutions and can enforce parts of this regime. to cancel or revoke licences and registrations across banking, insurance, life insurance and private health insuranceOne of the regulated sectors affected because licence and registration powers can now be linked to FAR breaches..
APRAThe regulator that supervises banks, insurers and superannuation institutions and can enforce parts of this regime. and ASICThe market and consumer regulator that will share oversight of the regime with APRA. must include Financial Accountability RegimeThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. investigations in their annual reports from 2023-24 onward, but they cannot publish a particular person’s private affairs there.
Once the Financial Accountability Regime starts applying to the banking industry, ADIs and their authorised non-operating holding companies will become accountable entities and the Banking Executive Accountability Regime will be repealed. [Schedule 1, items 94 to 107 of the Financial Accountability Regime (Consequential Amendments) Bill 2023]Financial Accountability Regime (Consequential Amendments) explanatory memorandum
APRA and ASIC may share information that is obtained, produced, or disclosed for the purposes of the Financial Accountability Regime Bill 2023. APRA and ASIC are also required to share certain information necessary to enable the joint administration and enforcement of the regime. These arrangements are in addition to information‑sharing frameworks available to APRA and ASIC under other legislation. [Section 39 of the Financial Accountability Regime Bill 2023]Financial Accountability Regime (Consequential Amendments) explanatory memorandum
Information obtained or disclosed under the Financial Accountability Regime that is protected information (as defined by the enabling legislation for APRA and ASIC) will be exempt from the Freedom of Information Act 1982. This exemption already exists for protected information held by APRA. Schedule 1 to the Financial Accountability Regime (Consequential Amendments) Bill 2023 extends the exemption to also cover information obtained or disclosed under the Financial Accountability Regime that is held by ASIC. [Schedule 1, item 17 of the Financial Accountability Regime (Consequential Amendments) Bill 2023, section 127 of the Australian Securities and Investments Commission Act 2001; Schedule 1, items 1 and 5 to 9 of the Financial Accountability Regime (Consequential Amendments) Bill 2023; section 56(11) of the Australian Prudential Regulation Authority Act 1998]Financial Accountability Regime (Consequential Amendments) explanatory memorandum
For instance, Schedule 1 to the Financial Accountability Regime (Consequential Amendments) Bill 2023 makes necessary amendments to other Acts so that a breach of the Financial Accountability Regime can be used by APRA as the basis to:Financial Accountability Regime (Consequential Amendments) explanatory memorandum
APRA and ASIC must include information about investigations conducted under the Financial Accountability Regime in their respective annual reports from the 2023–24 financial year onwards. The information each regulator provides should deal with its own investigations and joint investigations, but need not cover investigations conducted solely by the other regulator. [Schedule 1, item 13 and Schedule 2, item 32 of the Financial Accountability Regime (Consequential Amendments) Bill 2023; section 59 of the Australian Prudential Regulations Authority Act 1998; Schedule 1, items 18 and 20 of the Financial Accountability Regime (Consequential Amendments) Bill 2023; sections 136, 340 and 341 of the Australian Securities and Investments Commission Act 2001]Financial Accountability Regime (Consequential Amendments) explanatory memorandum
Context
Banks were already covered by the Banking Executive Accountability RegimeThe older bank-only accountability system that is being replaced once the new regime starts for banking., but the government moved to replace that bank-only system with the wider Financial Accountability RegimeThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. for banking, insurance and superannuation, which meant other laws also had to be updated so APRAThe regulator that supervises banks, insurers and superannuation institutions and can enforce parts of this regime. and ASICThe market and consumer regulator that will share oversight of the regime with APRA. could share information, protect sensitive material, use licence powers and report investigations consistently. After Parliament passed the package in September 2023, implementation did not run exactly to the original timetable, with regulators confirming in February 2024 that full bank enforcement would be delayed while the rules were finalised and then warning super funds in March 2024 to prepare for enforcement when the regime reached them in 2025.
Government introduces the bill to support the new accountability regime
The bill was introduced as part of the package creating the Financial Accountability RegimeThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. so the wider system could replace the bank-only BEARThe older bank-only accountability system that is being replaced once the new regime starts for banking. and work across other financial sectors.
Hansard ↗Parliament passes the bill
Both houses passed the bill, clearing the legal changes needed for the new regime to share information between APRAThe regulator that supervises banks, insurers and superannuation institutions and can enforce parts of this regime. and ASICThe market and consumer regulator that will share oversight of the regime with APRA., protect collected material and tie FARThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. breaches to licensing powers.
Parliamentary timeline ↗Royal AssentThe final step that turns a bill into law after Parliament passes it. completes the consequential amendments
Royal AssentThe final step that turns a bill into law after Parliament passes it. turned the bill into law and locked in the transition timetable under which banking would move first and insurance and superannuation would follow later.
Parliamentary timeline ↗Regulators delay full enforcement for banks
APRAThe regulator that supervises banks, insurers and superannuation institutions and can enforce parts of this regime. and ASICThe market and consumer regulator that will share oversight of the regime with APRA. told banks that full enforcement of the new regime would be pushed back for months because the rules were still being finalised.
Australian Financial Review ↗APRAThe regulator that supervises banks, insurers and superannuation institutions and can enforce parts of this regime. and ASICThe market and consumer regulator that will share oversight of the regime with APRA. warn super funds to prepare for 2025 enforcement
Regulators and lawyers said the Financial Accountability RegimeThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. would reach super funds in March 2025 and that enforcement would begin from the day it took effect.
Australian Financial Review ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
Second reading debate
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final step that turns a bill into law after Parliament passes it., turning the bill into an Act.
Key criticism
The main criticism was that the bill helped set up an accountability regime that was too weak because it did not include personal civil penalties or million-dollar fines for senior bankers who breach the rules. That argument was raised mainly by the Greens, while the Coalition said it would support the bill and did not oppose its passage.
Criticism was real but narrow, centred on tougher penalties rather than the bill’s overall purpose.
Regime seen as too weak without personal penalties
Greens MPs and senators argued the bill was part of an accountability regime that lacked real teeth because it did not impose personal civil penalties or large fines on individual executives. They said that without stronger sanctions, banks and senior leaders could avoid meaningful consequences and the reforms would amount to accountability in name only.
Further sources
Votes
The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.
Senate
Defeated 17 to 31. Support came from Greens, Jacqui Lambie Network, One Nation, UAP, and minor parties and independents. Opposition came from Labor, Liberal Party, and Nationals. Minor-party and independent votes were split.
The proposed change was not agreed.
These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.
Parliamentary debate
Start here — lead voices
Jones supports the bill as part of the package that completes remaining banking royal commission reforms.
Read in Hansard ↗Chandler-Mather opposes the bill because Labor backed away from a Greens deal to include million-dollar fines for bankers who break the law.
Read in Hansard ↗Robert says the opposition will not block the bill and will support its passage, but criticises the government for mismanaging it and for delaying related reforms on financial advice.
Read in Hansard ↗Ayres supports the bill as part of the package that finalises remaining Banking Royal Commission reforms, saying it makes the minor and transitional law changes needed to support the Financial Accountability RegimeThe new accountability framework that this bill helps put in place for banks, insurers and superannuation entities. and repeal BEARThe older bank-only accountability system that is being replaced once the new regime starts for banking..
Read in Hansard ↗All speeches by bloc
4 speakers · 4 support
“The Bill will make minor and consequential amendments to various Commonwealth laws to support the Financial Accountability Regime and provide transitional arrangements relating to the repeal of the Banking Executive Accountability Regime (BEAR).”Read the full speech in Hansard ↗
“These bills are designed as a response to several recommendations. The first set of bills will establish the Financial Accountability Regime, the FAR, implementing five recommendations made by the royal commission. It will take a systemic change to address the issues highlighted by the royal commission, and it must be from top to bottom.”Read the full speech in Hansard ↗
“I'd like to thank those senators who have contributed to this debate. Together these bills implement the Financial Accountability Regime. Through these bills, the government is finalising the necessary action to ensure that financial institutions are meeting the community's expectations and to ensure that their executives face real consequences if those expectations aren't met. The Financial Accountability Regime delivers on the government's commitment to finalise the implementation of five recommendations from the banking royal commission. The FAR will increase the accountability of financial institutions in the banking, insurance and superannuation industries and their most senior executives and directors, restoring trust and confidence in a sector that plays an integral role in the wellbeing of all Australians in our economy.”Read the full speech in Hansard ↗
“The bill will make minor and consequential amendments to various Commonwealth laws to support the Financial Accountability Regime and provide transitional arrangements relating to the repeal of the Banking Executive Accountability Regime, otherwise known as the BEAR.”Read the full speech in Hansard ↗
5 speakers · 5 support
“We will not deny this bill a second reading. We call on the House, clearly, to recognise the mismanagement of this bill, the government's dishonesty with the Australian people and the need for the government to commit to reducing pressure on inflation not only by controlling its own spending and by not taxing Australians more but by getting on with legislating the Levy review so Australians can have cheaper access to financial services. I support the amendment moved by the member for Hume and commend the bill to the House.”Read the full speech in Hansard ↗
“When I was the chair of the corporations and financial services committee I had some pretty grave reservations about the introduction of a compensation scheme of last resort, and quite frankly I still do. We need to be very careful that government doesn't just keep stepping in on all occasions saving people from themselves. Some people will make poor decisions. Some people will make poor decisions based on poor advice. What we need to be careful of in this country is that we don't try and de-risk everything, because ultimately if we try and de-risk everything we demotivate the concept of investment. Everybody would invest if there was no risk, but the likely rewards from those investments, in my view, are likely to be diminished as a result. And of course, we also have the costs of paying for the levies. Let's not be naive about this, the levies that will be paid by the relevant institutions—ultimately it's the punters that're going to pay for these things through increased charges. So whilst I support the legislation, as does the coalition, I just want to put it on the record that I have had concerns and I still have concerns about the concept of a compensation scheme of last resort. Where unscrupulous operators give poor advice and are not in a financial position, either them or their insurers, to be able to provide assistance to people who have been impacted upon, then, sure, it's not a bad thing. But there are broader implications for the broader economy here. I just make this point again: you can't deleverage risk from our world. We need to be very careful about how we try and do that. There is risk in everything. I think we as legislators need to be very mindful of that.”Read the full speech in Hansard ↗
“Whilst we won't deny this bill a second reading—it has taken way too long for the bill to get to this point anyway—we do call on the House to recognise the government's mismanagement of the bill, the government's dishonesty with the Australian people, particularly with respect to tax, and the need for the government to commit to reducing inflation and pressure on the cost of living by controlling its own spending, not by taxing Australians more.”Read the full speech in Hansard ↗
“So for all of these reasons, it is important that we have trust in our financial services industry. Largely, most operators within our financial services industry are scrupulous; however, in order to maintain integrity and to restore Australians' faith in our system, I commend these bills to the House.”Read the full speech in Hansard ↗
“With that in mind, the coalition will support the passage of the bill this evening.”Read the full speech in Hansard ↗
3 speakers · 2 oppose · 1 mixed
“This bill, the Financial Accountability Regime Bill, has no personal civil penalties for bankers—none at all. That's what we object to, so I will be supporting Senator McKim's motion tomorrow. I point out exactly what Senator McKim said. Mr Jones in the lower house is a friend of the banks. The Labor Party is the party that brought in, under the Fisher Labor government of 1910-11, the Commonwealth Bank, and the most important thing it did was get Australia's banking foundations set up. It supported infrastructure. We were the only country to come out of the First World War without any debt. We also established trade and our industry thanks to the Commonwealth Bank. But the biggest thing the Commonwealth Bank did as a public bank, as a people's bank, was ensure accountability through competition with the big private banks. It is sad to say that Labor Party governments and Liberal Party governments—and the predecessors to Liberal Party governments—slowly, surely and deliberately dismantled the Commonwealth Bank until Paul Keating flogged it off as another retail bank.”Read the full speech in Hansard ↗
“This incident, reneging on a deal struck with the Greens, speaks to everything that is wrong with Australian politics. We will be moving a third reading amendment. You will get a chance to stand up and explain to your constituents why banks shouldn't be fined $1 million. I'm really looking forward to that, actually. It really reminds me of why so many people are fed up with politics and politicians. I'm sure a lot of them would love you to explain why bankers should get an easy ride and they should get a tough one.”Read the full speech in Hansard ↗
“I would have thought that the key part of this was accountability, but Labor's mates in the banking lobby have made sure that this bill is about accountability in name only. Astonishingly, the bill does not provide for fines for wealthy bankers who have breached their accountability obligations.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Committee of the Whole debate
Committee of the Whole debate
The bill reached this recorded parliamentary step.
Senate · Committee of the Whole debate
Committee of the Whole debate
The bill reached this recorded parliamentary step.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turns a bill into law after Parliament passes it., turning the bill into an Act.
