Consultation has begun on changes to the Financial Accountability Regime that aim to reduce reporting for all accountable entities and 4500 accountable people.

Proposals include removing “key functions” requirements from the FAR rules and no longer requiring information on accountable persons’ direct reports in accountability maps.

Australian Prudential Regulation Authority deputy chair Therese McCarthy Hockey says the aim is to get the “balance right by reducing unnecessary burden” while maintaining financial safety and stability.

The authority and the Australian Securities and Investments Commission intend to finalise their proposed changes by the end of the year, with commencement planned for early next year.

They say the plans are “informed by experience administering the regime and engagement with industry” after the FAR took effect 18 months ago.

“We continue to explore opportunities to streamline the way entities deal with us in the areas we regulate,” ASIC commissioner Alan Kirkland said.

“The proposed changes to FAR reporting will simplify reporting without undermining the strong accountability standards that Australians expect from their banks, superannuation funds and insurers.”

Consultation closes on October 2. Find details here.