The federal government has introduced a new legislative instrument relating to the Banking Executive Accountability Regime and is seeking feedback from industry stakeholders.
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 BEAR 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:
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.
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