Banking Act 1959

Part IIAA - The Banking Executive Accountability Regime  

Division 4 - Deferred remuneration obligations  

SECTION 37EC   Minimum period of deferral  

(1)  
The required period under subparagraph 37E(1)(a)(iii) in relation to variable remuneration of an accountable person of an ADI, or a subsidiary of an ADI, is:


(a) 4 years; or


(b) a shorter period approved by APRA under subsection (4) in relation to the variable remuneration;

starting on the day after the day on which the decision was made granting the accountable person the variable remuneration.

(2)  
However, if, at the end of the period under subsection (1), the ADI or subsidiary considers that the accountable person is likely to have failed to comply with his or her accountability obligations under section 37CA , that period is extended until the day the ADI or subsidiary determines whether he or she has failed to comply.

(3)  
An ADI may apply to APRA for APRA to approve a shorter period under subsection (4) in relation to the variable remuneration of an accountable person of an ADI, or a subsidiary of an ADI, if the ADI is satisfied that:


(a) based on the information known at the time of the application, the accountable person has complied with his or her accountability obligations under section 37CA ; and


(b) it is unlikely that further information will become known, before the end of the 4 year period mentioned in paragraph (1)(a), that indicates that the accountable person did not comply with those obligations.

(4)  
APRA may approve a shorter period in relation to the variable remuneration of a person if APRA is satisfied that:


(a) either:


(i) the person is no longer an accountable person of the ADI or subsidiary, because of the person ' s death, serious incapacity, serious disability or serious illness; or

(ii) a circumstance determined under subsection (5) or (6) exists relation to the person; and


(b) the ADI or subsidiary has taken all reasonable steps to satisfy itself of the matters mentioned in paragraphs (3)(a) and (b).

(5)  
APRA may, by written notice given to an ADI, determine circumstances for the purposes of subparagraph (4)(a)(ii) in relation to the ADI and/or one or more subsidiaries of the ADI.

(6)  
APRA may, by legislative instrument, determine circumstances for the purposes of subparagraph (4)(a)(ii).




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