ASIC and APRA have published their final suite of rules and guidance to assist insurers and superannuation trustees ahead of the Financial Accountability Regime (FAR) commencement on 15 March 2025. This followed a period of public consultation in March and April 2024 on the Key Function descriptions for insurers and superannuation providers.
They have now confirmed the Key Function descriptions for insurers and superannuation providers, which is information that entities will need to report to the Regulators for inclusion in the register of accountable persons.
Key Functions for insurers and superannuation providers under FAR
Key Functions are specified areas of responsibility that accountable entities must allocate to accountable persons, where applicable. They are functions or functional areas that are deemed to be of particular importance from a prudential and conduct perspective.
Information regarding each Key Function must be included in the register of accountable persons where:
- an accountable entity undertakes that particular Key Function;
- an accountable person has actual or effective senior executive responsibility for management or control of the whole of, or a significant or substantial part or aspect of, that particular Key Function.
The Regulator rules do not require a relevant accountable entity to undertake each Key Function or to assign each Key Function to an accountable person.
Key Functions are different from Prescribed Responsibilities
Changes to the Key Function descriptions following consultation process
There was a period of public consultation in March and April 2024 on the Key Function descriptions for insurers and superannuation providers. There are 17 Key Function descriptions for insurers and 16 Key Function descriptions for superannuation providers.
Following the consultation process on the draft, Regulator Rules have:
Our team at Clayton Utz can assist your organisation in preparing for FAR. Contact one of our experts if you'd like to learn more about what FAR means for you, and what you can do to prepare. You can also keep up to date with FAR obligations and legal requirements with our FAR e-Learning Hub.