Unlike the banks, the regulators will not be liable for big fines that can be levied on banks, and individual bankers, for non-compliance with BEAR, a legislative regime that is being jointly administered by both regulators.
But the maps could be used to improve internal disciplinary procedures and to determine the size of bonuses paid to regulatory staff, as well as enhancing public accountability through parliamentary committee processes.
The maps reveal who is responsible for every core regulatory function and seek to minimise the amount of overlapping responsibility, a core feature of BEAR.
APRA said its accountable persons are its four “members”, six executive directors and its chief internal auditor and chief risk officer “given the integral role each plays in APRA’s governance arrangements by providing independent perspectives to assist with decision making”. APRA has released a 30-page accountability map setting out the joint or individual responsibilities for each person.
ASIC chairman James Shipton: ASIC places importance on transparency, regulatory integrity and effective oversight and management of its functions and responsibilities. Louie Douvis
It comes after a mid-year capability review by Graeme Samuel highlighted concerns, including from APRA’s own employees, that senior management was unable to accept criticism and effectively manage change.
Under ASIC’s Management Accountability Regime (it is using a new acronym, AMAR), there are 20 accountable staff members: its chairman, two deputy chairs, four commissioners, nine executive directors plus the general counsel, two chief supervisory officers and the chief of internal audit and operational risk.
ASIC released a 16-page accountability table for the whole organisation, plus a 64-page document containing the accountability statements, effectively descriptions of the jobs done by each senior staff member.
The banks have varied in how many senior executives they have nominated under their BEAR accountability maps. Westpac had registered 14, while as of late 2018 Commonwealth Bank had extended BEAR to 90 of its executives, National Australia Bank to 22 and ANZ between 15 and 20.
After a royal commission recommendation, the banks have extended BEAR to anyone with responsibility for the design and delivery of banking products.
APRA said its accountable persons “have signed their individual statements as acknowledgment that they understand and accept their accountabilities”. The maps will be used when assessing entitlements to discretionary annual bonuses.
ASIC said the maps would influence expectations under its employee code of conduct.
In a parallel process, ASIC has also refreshed its governance structures and decision-making procedures, providing detail on a refreshed committee structure and reporting lines.
ASIC chairman James Shipton said: “The update reflects the importance ASIC places on transparency, regulatory integrity and effective oversight and management of its functions and responsibilities.”
The government has said it will extend BEAR to all firms that hold a financial services or credit licence – including the superannuation and insurance industries – and to market operators.
