Financial Accountability Regime Act 2023

A person is prohibited from being an accountable person of an accountable entity or significant related entity if the person:

is not registered in respect of the accountable entity or significant related entity on the register established under section 40; or

is disqualified under section 42 from being or acting as an accountable person of the accountable entity or significant related entity.

If a person becomes an accountable person of an accountable entity or significant related entity by filling a temporary or unforeseen vacancy, paragraph (1)(a) does not apply to the person in respect of the accountable entity or significant related entity until the person has been an accountable person of the entity for:

90 days; or

such other period as is determined under subsection (5) or prescribed by the Regulator rules.

One example of a temporary vacancy is when the holder of a position is absent from duty but is expected to return. Another is where a position becomes vacant and there is an intention to fill it, but the new holder has not yet been appointed.

If a person becomes an accountable person of an accountable entity by being appointed a director of a body corporate at a general meeting of the body, paragraph (1)(a) does not apply to the person in respect of the accountable entity until the person has been an accountable person of the entity for:

30 days; or

such other period as is determined under subsection (5) or prescribed by the Regulator rules.

If, because a body corporate first becomes an ADI, an authorised NOHC of an ADI, a general insurer, an authorised NOHC of a general insurer, a life company, a registered NOHC of a life company, a private health insurer or an RSE licensee:

that or another body corporate becomes an accountable entity; and

a person becomes an accountable person of the accountable entity, or of a significant related entity of the accountable entity;

30 days; or

such other period as is determined under subsection (5) or prescribed by the Regulator rules.

The Regulator may, by written notice given to an accountable entity or significant related entity, determine a period for the purposes of paragraph (2)(b), (3)(b) or (4)(d).

If a determination made under subsection (5) is inconsistent with Regulator rules made for the purposes of paragraph (2)(b), (3)(b) or (4)(d), the determination prevails and the Regulator rules, to the extent of the inconsistency, do not have any effect.

A determination made under subsection (5) is not a legislative instrument.