The Banking Executive Accountability Regime (BEAR) has made banks and businesses cautious and concerned. Banks have echoed a warning that BEAR threatens the clarity of roles between APRA and ASIC, and also creates potential upheaval with insurance and superannuation funds, as BEAR could be broadly applied to such organisations.
Reputation is said to be hard won and easily lost. When reputation is damaged in a corporate environment, scrutiny by regulators and shareholders, particularly when it impacts on the bottom line and/or market value, will often increase.
Recently, CPA Australia was subject to considerable criticism about the remuneration of its prior CEO and management team.
Company Directors have warned that the BEAR regime gives the Australian Prudential Regulation Authority (APRA) too much power and creates more risk-aversion in Authorised Deposit taking Institutions (ADIs). The regime may restrict ADIs in selecting the accountable persons subject to the regime based on essential corporate needs and requirements.
Treasury’s Banking Executive Accountability Regime (BEAR) provides food for thought for every enterprise looking to ensure KMP manage resources in the long-term interests of the organisation.