BEAR to FAR: Navigating Accountability in a New Regulatory Era
As part of StarCompliance’s (Star) commitment to exploring the compliance topics that matter most to our clients and the wider regulatory community, we recently hosted a webinar BEAR to FAR: What Supers & Insurers Can Learn from the Banking Sector with James Chidwick of Star and Liam Hennessy, Partner at Thomson Geer and one of Australia’s foremost experts on individual accountability regimes.
With the Financial Accountability Regime (FAR) now in effect for banks and expanding to superannuation funds and insurers, this session focused on what the broader financial sector can learn from the banking industry’s earlier experience under the Banking Executive Accountability Regime (BEAR).
A Quick Look Back: From BEAR to FAR
BEAR was introduced in 2018 to increase executive accountability in the banking sector following the global financial crisis. It was a targeted regime overseen by APRA, with a focus on prudential outcomes. However, its limited scope prompted calls for broader reform. In 2023, FAR was legislated to extend BEAR’s principles across the financial sector, with joint oversight from Australian Prudential Regulation Authority (APRA) and Australian Securities and Investments Commission (ASIC).
“At Star, we saw the most success in the banking sector when firms embedded accountability into their daily workflows and supported it with the right technology. Not just during implementation, but as part of an ongoing and evolving practice.” – James Chidwick
Four Key Takeaways from the Webinar
- FAR is a step change, not an incremental shift. It brings enhanced obligations, broader coverage, and dual regulatory enforcement.
- Banks’ early lessons provide a roadmap. Their experience with BEAR highlights the value of early planning, continuous refinement, and embedding accountability into business operations.
- Super funds face unique complexity. With extensive outsourcing and broader internal delegations, documenting reasonable steps and managing accountability handovers are critical.
- Technology will be key to sustainable compliance. Manual processes may suffice in the early phases, but digitised frameworks are essential for long-term compliance, evidence management, and regulatory readiness.
“FAR ultimately comes down to two things for accountable persons: information and control. If you don’t have the right information to make decisions or the ability to act when something goes wrong, you’re exposed.” – Liam Hennessy
Technology Advances FAR Compliance
Star’s SaaS-based FAR software is purpose-built to support firms navigating FAR. Star’s Global Accountability Solution enables entities to establish and maintain compliant frameworks for their accountable persons, centralise responsibility mapping and documentation, and adapt to evolving regulatory expectations with confidence and agility.
On-demand Webinar
BEAR to FAR: What Supers & Insurers Can Learn from the Banking Sector
This webinar will explore key takeaways from BEAR’s implementation and provide actionable insights on how superannuation funds can proactively adapt to FAR’s accountability requirements.
Looking to future-proof your compliance programme? Explore how Star’s SaaS-based solutions can help — click [HERE].
