Banking Act 1959

Part IIAA - The Banking Executive Accountability Regime  

Division 4 - Deferred remuneration obligations  

SECTION 37E   The deferred remuneration obligations of an ADI  

(1)  
The deferred remuneration obligations of an ADI are:


(a) to ensure that, in relation to the variable remuneration of an accountable person of the ADI:


(i) the payment of a portion of that variable remuneration is deferred for a period; and

(ii) the amount of that portion is at least the amount required under section 37EB ; and

(iii) that period is at least the period required under section 37EC ; and


(b) to have a remuneration policy in force that requires that, if the person has failed to comply with his or her accountability obligations under section 37CA , the person ' s variable remuneration is to be reduced by an amount that is proportionate to the failure; and


(c) to ensure that, if the remuneration policy requires the variable remuneration to be reduced because of that failure, the amount of the reduction is not paid to the person; and


(d) to take reasonable steps to ensure that, if:


(i) variable remuneration may become payable to an accountable person of a subsidiary of the ADI; and

(ii) the subsidiary is not an ADI;
the subsidiary complies with paragraphs (a), (b) and (c) as if the subsidiary were an ADI.

(2)  
A reduction of variable remuneration:


(a) need not be a reduction of variable remuneration relating to a period in which the failure occurred; and


(b) may be a reduction to zero.

(3)  
Remuneration , of an accountable person, includes:


(a) in relation to an accountable person of an ADI - any amount of remuneration that:


(i) is paid or payable to the accountable person by a related body corporate of the ADI; and

(ii) if that related body corporate is a non-ADI holding company of the ADI - does not relate only to the accountable person holding a position in the related body corporate; or


(b) in relation to an accountable person of a subsidiary of an ADI - any amount of remuneration that:


(i) is paid or payable to the accountable person by a related body corporate of the subsidiary; and

(ii) if that related body corporate is a non-ADI holding company of the subsidiary - does not relate only to the accountable person holding a position in the related body corporate.

 

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