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Will you be FAR ready by 15 March 2024?

From 15 March 2024, the long-awaited Financial Accountability Regime Act 2023 will come into effect in Australia, replacing the BEAR. How will you be impacted and what are the insurance implications?

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Update on insurance implications

The long-awaited Financial Accountability Regime Act 2023 (Cth) (FAR Act) is finally here. From 15 March 2024, the FAR Act will come into effect in Australia, replacing the Banking Executive Accountability Regime (BEAR) and apply to all authorised deposit-taking institutions (ADIs). Additionally, the Financial Accountability Regime (Consequential Amendments) Act 2023 (Cth) (FCA Act) will provide various transitional mechanisms for ADIs previously subject to the BEAR.

The new financial accountability regime aims to improve the risk and governance cultures of Australia’s financial institutions through a strengthened responsibility and accountability framework.

Further to our August 2021 whitepaper, we now provide an update on potential insurance implications of the new legislation, including policy amendments you may need to consider in relation to your professional indemnity (PI) and directors and officers (D&O) liability insurances.

Are you FAR ready? How will you be impacted from 15 March 2024? Download our whitepaper to learn more.

Whitepaper

2024 update on FAR and its insurance implications

Our people

Melita Simic

Melita Simic

Head of Technical Services, Pacific

  • Australia

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Richard Garside

Head of Financial and Professional Services, Pacific

  • Australia

 

Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. LCPA 24/056

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”