Financial Accountability Regime 2023

# Financial Accountability Regime 2023 ## What it does This law tightens the rules for banks, insurance companies, and superannuation funds to make their leaders personally responsible for what goes wrong. Senior executives now have to meet strict accountability standards, and they can't just blame the organisation—they're on the hook individually. ## Why it matters After scandals like the banking royal commission, regulators wanted stronger safeguards to stop misconduct and make sure someone actually faces consequences. This means executives can't hide behind corporate structures, and you should see fewer "we didn't know" excuses when things go pear-shaped. ## Key details - **Who's affected**: Senior managers at financial institutions—banks, insurers, super funds—classified as "accountable persons" under the regime - **Deferred pay rules**: Executives have to have a chunk of their bonuses held back for years (not paid out immediately), so they lose money if the company gets caught breaking rules later - **Personal obligations**: Leaders must take "reasonable steps" to stop their company breaking the law—it's not optional anymore, and the regulator can be notified of breaches directly

🔒 Voting closed — this bill has been decided by parliament