Banking Executive Accountability Regime Exposure draft law and explanatory materials To assist in identifying relevant issues this table sets out the key elements of the BEAR and shows the relevant sections and references. In some cases, the exposure draft does not include specific details on particular issues. These are explained below. Issue Bill ref. Brief explanation Which entities are covered by the BEAR? BEAR obligations fall on an ADI, which must take reasonable steps to Coverage of ADIs and subsidiaries 37 ensure that its subsidiaries meet certain obligations. Application to foreign ADIs 37(2)(b) There are specific requirements on Minister’s power to exempt ADIs 37A the Australian branch of a foreign 37KA ADI. Coverage of accountable persons 37B Definition of small, medium and large ADI 37G(3) Who is an accountable person? 37BA A person’s responsibilities or the level of control and influence over an General definition of accountable person 37BA(1) ADI determine whether they are an accountable person. Types of responsibilities for accountable 37BA(3) persons covered by the BEAR Accountable persons must be in the ADI and can be in its subsidiaries or APRA’s power to exclude particular 37BB non-ADI parent. responsibilities from the operation of the BEAR Who is prohibited from being an 37DA accountable person? What are an ADI’s BEAR obligations? Accountability obligations of an ADI and 37C subsidiaries Key personnel obligations of an ADI and 37D subsidiaries Deferred remuneration obligations of an 37E ADI and subsidiaries Notification obligations of the ADI 37F ADI obligations to provide accountability 37FA statements
Banking Executive Accountability Regime Exposure draft law and explanatory materials To assist in identifying relevant issues this table sets out the key elements of the BEAR and shows the relevant sections and references. In some cases, the exposure draft does not include specific details on particular issues. These are explained below. Issue Bill ref. Brief explanation Which entities are covered by the BEAR? BEAR obligations fall on an ADI, which must take reasonable steps to ensure that its subsidiaries meet certain obligations. There are specific requirements on the Australian branch of a foreign ADI. Coverage of ADIs and subsidiaries 37 Application to foreign ADIs 37(2)(b) Minister’s power to exempt ADIs 37A 37KA Coverage of accountable persons 37B Definition of small, medium and large ADI 37G(3) Who is an accountable person? 37BA A person’s responsibilities or the level of control and influence over an ADI determine whether they are an accountable person. Accountable persons must be in the ADI and can be in its subsidiaries or non-ADI parent. General definition of accountable person 37BA(1) Types of responsibilities for accountable persons covered by the BEAR 37BA(3) APRA’s power to exclude particular responsibilities from the operation of the BEAR 37BB Who is prohibited from being an accountable person? 37DA What are an ADI’s BEAR obligations? Accountability obligations of an ADI and subsidiaries 37C Key personnel obligations of an ADI and subsidiaries 37D Deferred remuneration obligations of an ADI and subsidiaries 37E Notification obligations of the ADI 37F ADI obligations to provide accountability statements 37FA