The prudential and corporate regulators have released a consultation paper on proposed Financial Accountability Regime (FAR) rules and draft key descriptions for insurance and superannuation entities.

They have also outlined the steps insurers and their superannuation counterparts should take ahead of March 15 next year, when their businesses have to comply with FAR. The new accountability regime commenced on Friday, applying first to the banking sector.

The Australian Prudential Regulation Authority and Australian Securities and Investments Commission are joint administrators of FAR.

In their joint letter they say: “Insurance and superannuation entities are encouraged to be proactive in preparing for the implementation of the FAR, moving beyond a focus on just meeting minimum compliance obligations to one where entities understand, clarify and sharpen their existing accountability arrangements.

“The regulators will also consider conducting targeted activities to support the effective implementation of the FAR.”

To help the industry with FAR preparation, the regulators will hold a webinar for general and life insurance entities on April 10.

They have also released an information package for all relevant entities to help them understand their obligations and reporting procedures for FAR.

The closing date for submissions is April 19.

Click here for the consultation paper and here for the information package.