Royal Commission recommendations reach exposure draft: FAR, CSLR

Media Release: The Morrison Government has today released exposure draft legislation to implement a further seven recommendations of the Banking, Superannuation and Financial Services Royal Commission.

The legislation will establish the Compensation Scheme of Last Resort (recommendation 7.1) and the Financial Accountability Regime (recommendations 3.9, 4.12, 6.6, 6.7 and 6.8).

The establishment of the Compensation Scheme of Last Resort will support ongoing confidence in the financial system’s dispute resolution framework by facilitating the payment of compensation to eligible consumers who have received a determination for compensation from the Australian Financial Complaints Authority (AFCA) which remains unpaid.

The Financial Accountability Regime will extend the Banking Executive Accountability Regime to all APRA-regulated entities and will be jointly administered by APRA and ASIC.

The Financial Accountability Regime imposes a strengthened responsibility and accountability framework within financial institutions, recognising that decisions taken by directors and the most senior executives of financial institutions are significant for millions of Australians and the Australian economy.

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