The Federal Government has finalised rules for the Financial Accountability Regime, which starts on Friday for the banking sector and from March next year for insurance and superannuation.

The rules set out the responsibilities and positions that make someone an “accountable person”, and the total asset size at which an entity is required to provide regulators with additional accountability statements and maps.

Senior executives with responsibility for management or control of an accountable entity and its significant related entities, financial resources, risk management controls and internal audit functions are accountable persons, the rules state. In the insurance sector, accountable persons will include people with senior executive responsibility for management of actuarial function and/or claims handling.

The regime replaces and extends the Banking Executive Accountability Regime, introducing significantly tougher accountability obligations, as recommended by the Hayne royal commission.

“The Government is committed to ensuring regulation is applied proportionately without compromising consumer safeguards,” Financial Services Minister Stephen Jones said. “Following consultation, the rules have been updated to align enhanced regulation with the broader approach to regulation by [the Australian Prudential Regulation Authority].”

The authority and the Australian Securities and Investments Commission are joint administrators of the accountability regime and have released final guidance on compliance.

The administrators say they will next consult on proposed key functions for insurance and superannuation entities.

Click here for the rules and here for the joint administrators’ information package.