Australian Prudential Regulation Authority Chairman Wayne Byres says its proposals to overhaul remuneration standards to improve financial sector culture have caused “a fair amount of angst”.

“The concerns have come from entities, industry bodies, investors and shareholder groups, and we are considering all of the issues carefully,” he told the House of Representatives Standing Committee on Economics today.

“We are not wedded to the specific proposals we put out for consultation, but equally we have been clear that the status quo will not be acceptable.”

APRA received 74 submissions to its consultation and plans to release its response to the feedback early next year.

Actuarial consultant Finity warned in September that every insurer would need a full rethink of its performance pay system under reforms flagged in the wake of the Hayne royal commission.

“This is not a small undertaking,” it said. “There will need to be a new governance process for remuneration for many companies

APRA’s consultation paper says it is seeking to promote the use of non-financial performance criteria in designing variable remuneration incentives.