Australia is strengthening its approach to financial oversight and corporate responsibility. The Financial Accountability Regime will replace the previous accountability framework and introduce broader obligations for regulated organisations. This shift marks a significant step toward stronger governance risk management and individual responsibility across the financial sector.
The new regime is designed to reinforce ethical conduct and sound decision making within financial institutions. It requires organisations to implement clear governance structures effective internal controls and transparent risk management practices. Senior leaders and board members are held personally accountable for their areas of responsibility which encourages a culture of ownership and compliance.
What the Financial Accountability Regime changes
The Financial Accountability Regime expands the scope of accountability beyond its predecessor. It now applies to a wider range of regulated entities including banking institutions insurers superannuation trustees and relevant holding companies. Oversight is shared between two regulators which increases scrutiny and raises expectations around reporting accuracy and timeliness.
Another major change is the way organisations are classified. Entities are now grouped as either core or enhanced based on their size and complexity. Enhanced entities face additional obligations such as preparing detailed accountability statements and accountability maps that clearly show how responsibilities are allocated across the organisation.
Penalties under the new framework are also more substantial. Regulators have greater powers to impose significant financial sanctions and to disqualify individuals from holding accountable roles where obligations are not met. Deferred remuneration rules have been standardised which removes variations based on entity size and places greater emphasis on long term accountability.
Preparing for the transition
Many banking organisations will already have taken steps to strengthen their governance frameworks. Typical preparation activities include reviewing accountability structures identifying accountable persons and key personnel and updating internal processes to meet new notification requirements. Enhanced entities also need to refresh accountability maps and statements and confirm which subsidiaries fall within scope.
Insurance providers superannuation trustees and non banking holding companies have a later commencement date yet the scale of change may be greater. These organisations should use the additional time to brief boards and senior executives assess impacted entities and subsidiaries and reflect on how clearer accountability can positively influence organisational culture.
Increased demands on company secretaries
The expanded obligations bring a sharp increase in data management and record keeping requirements. Company secretaries play a central role in maintaining accurate secure and up to date records of accountable persons key personnel and regulated entities. They must ensure reporting to regulators is timely and complete while also supporting board level oversight and internal reporting needs.
For enhanced entities the responsibility extends further to managing accountability statements maps and ongoing updates as roles or structures change. Without the right systems in place this can quickly become complex and resource intensive.
Making compliance more manageable with Dess Digital
Dess Digital provides an entity and subsidiary management solution designed to simplify compliance with the Financial Accountability Regime while supporting stronger governance practices.
Clear accountability and obligation mapping
Maintaining a reliable record of accountable entities personnel and responsibilities is essential. Dess Digital centralises compliance information alongside corporate records to give a complete relationship based view across the organisation. Strong security controls role based access and detailed audit logs help protect sensitive data while ensuring transparency and traceability.
Stronger governance oversight
The platform supports structured accountability statements and maps and helps promote consistent governance standards across all entities. Custom dashboards and reports allow internal teams auditors and advisers to access accurate information quickly. Automated alerts calendars and digital approvals reduce manual effort and help ensure deadlines are met.
Efficient reporting and notifications
Regulatory reporting and internal updates become simpler with visual group structures and scenario modelling that show the impact of organisational changes. Filing preparation is streamlined which reduces administrative burden and lowers the risk of errors during submissions.
Moving forward with confidence
Australia’s renewed focus on accountability and transparency is aimed at creating a more resilient and trustworthy financial system. While the new requirements are more demanding they also present an opportunity to strengthen governance and improve operational efficiency.
By adopting a robust entity management approach organisations can better manage compliance reduce risk and support their company secretaries and leadership teams. Dess Digital helps turn complex regulatory obligations into structured manageable processes that support long term governance excellence.
