Part IIAA
-
The Banking Executive Accountability Regime
History
Pt IIAA inserted by No 5 of 2018, s 3 and Sch 1 item 1, effective 1 July 2018. No 5 of 2018, s 3 and Sch 1 items 15
-
18 contain the following application provisions:
Part 3
-
Application of amendments
15 Requirement to register
If, immediately before the commencement of Part
IIAA
of the
Banking Act 1959
as amended by this Act, a person held a position, in or relating to an ADI or a subsidiary of an ADI, that causes the person on that commencement to be an accountable person of that ADI or subsidiary, paragraph
37DA(1)(a)
of that Act as so amended does not apply in relation to that person until the end of the period of 90 days after that commencement.
16 Deferral of variable remuneration
(1)
Division
4
of Part
IIAA
of the
Banking Act 1959
as inserted by this Act applies in relation to the variable remuneration of an accountable person only if the decision granting the accountable person the variable remuneration was made on or after 1 January 2019.
(2)
Despite subitem (1), if an accountable person
'
s variable remuneration is payable under a contract entered into before the day this Act received the Royal Assent, Division
4
of Part
IIAA
of the
Banking Act 1959
as inserted by this Act does not apply in relation to the variable remuneration until 1 January 2020.
(3)
Despite subitem (1), if:
(a)
an accountable person
'
s variable remuneration is payable under a contract entered into before the commencement of Part
IIAA
of the
Banking Act 1959
as inserted by this Act; and
(b)
apart from this subitem, the application of Division
4
of that Part in relation to the variable remuneration would result in an acquisition of property (within the meaning of paragraph
51(xxxi)
of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph);
that Division does not apply in relation to the variable remuneration to the extent that it would result in such an acquisition.
Note:
Because this subitem prevents Division
4
of Part
IIAA
of the
Banking Act 1959
from giving rise to such an acquisition of property in relation to variable remuneration payable under such a contract, compensation will not be payable under section
69E
of that Act.
17 Accountability statements and accountability maps
(1)
APRA may, by legislative instrument, determine, in relation to accountability statements and accountability maps mentioned in section
37F
of the
Banking Act 1959
as inserted by this Act, transitional requirements applying during the period (the
transition period
) of 18 months after the commencement of Part
IIAA
of the
Banking Act 1959
as so inserted.
(2)
Compliance during the transition period with those transitional requirements, to the extent that they relate to accountability statements, is taken, for the purposes of the
Banking Act 1959
, to be compliance with paragraph
37F(1)(a)
of that Act as inserted by this Act.
(3)
Compliance during the transition period with those transitional requirements, to the extent that they relate to accountability maps, is taken, for the purposes of the
Banking Act 1959
, to be compliance with paragraph
37F(1)(b)
of that Act as inserted by this Act.
(4)
This item does not limit the ways paragraph
37F(1)(a)
or (b) of the
Banking Act 1959
as inserted by this Act may be complied with during the transition period.
18 Application to small and medium ADIs
(1)
Despite item 15 and subitem 16(1), Part
IIAA
of the
Banking Act 1959
as inserted by this Act applies in relation to the following on and after 1 July 2019:
(a)
a medium ADI;
(b)
a small ADI;
(c)
an accountable person of a medium ADI;
(d)
an accountable person of a small ADI.
(2)
Despite subitem (1), if:
(a)
an accountable person
'
s variable remuneration is payable under a contract entered into before the commencement of Part
IIAA
of the
Banking Act 1959
as inserted by this Act; and
(b)
apart from this subitem, the application of Division
4
of that Part in relation to the variable remuneration would result in an acquisition of property (within the meaning of paragraph
51(xxxi)
of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph);
that Division does not apply in relation to the variable remuneration to the extent that it would result in such an acquisition.
Note:
Because this subitem prevents Division
4
of Part
IIAA
of the
Banking Act 1959
from giving rise to such an acquisition of property in relation to variable remuneration payable under such a contract, compensation will not be payable under section
69E
of that Act.
(3)
Despite item 17, transitional requirements determined by APRA under that item apply in relation to a medium ADI, or a small ADI, on and after 1 July 2019.
Division 3
-
Key personnel obligations
History
Div 3 inserted by No 5 of 2018, s 3 and Sch 1 item 1, effective 1 July 2018. For application provisions, see note under Pt
IIAA
heading.
SECTION 37DB
APRA may direct an ADI to reallocate responsibilities
(1)
APRA may give an ADI a written direction to reallocate a responsibility to which paragraph
37D(1)(a)
applies if APRA has reason to believe that the current allocation of the responsibility is likely to give rise to a prudential risk.
(2)
In deciding whether to issue a direction under subsection (1), APRA must have regard to the responsibilities of the accountable person set out in the accountability statement for the person under section
37F
.
(3)
The direction may specify the period within which it is to be complied with.
(4)
APRA may, by written notice given to the ADI, vary the direction if, at the time of the variation, it considers that the variation is necessary and appropriate.
(5)
The direction has effect until APRA revokes it by written notice given to the ADI. APRA may revoke the direction if, at the time of revocation, it considers that the direction is no longer necessary or appropriate.
History
S 37DB inserted by No 5 of 2018, s 3 and Sch 1 item 1, effective 1 July 2018. For application provisions, see note under Pt
IIAA
heading.
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