Financial Accountability Regime Act 2023

The deferred remuneration obligations of an accountable entity are:

to ensure that, in relation to the variable remuneration of an accountable person of the accountable entity:

the payment of a portion of that variable remuneration is deferred for a period; and

the amount of that portion is at least the amount required under subsection 27(1); and

that period is not shorter than the minimum deferral period (see section 28); and

to have a remuneration policy in force that requires that, if the person has failed to comply with one or more of their accountability obligations under section 21, the person’s variable remuneration is to be reduced by an amount that is proportionate to the failure; and

to ensure that, if the remuneration policy requires the variable remuneration to be reduced because of that failure, the amount of the reduction is not paid or transferred to the person; and

to take reasonable steps to ensure that, if variable remuneration may become payable to an accountable person of a significant related entity of the accountable entity, the significant related entity complies with each of paragraphs (a), (b) and (c) as if the significant related entity were an accountable entity.

A reduction of variable remuneration:

need not be a reduction of variable remuneration relating to a period in which the failure occurred; and

may be a reduction to zero.

Remuneration, of an accountable person, includes:

in relation to an accountable person of an accountable entity—any remuneration that:

is an amount paid or payable, or property transferred or transferrable, to the accountable person by a related body corporate of the accountable entity; and

relates wholly or partly to the responsibilities that cause the person to be an accountable person of the accountable entity; or

in relation to an accountable person of a significant related entity—any remuneration that:

is an amount paid or payable, or property transferred or transferrable, to the accountable person by a related body corporate of the significant related entity; and

relates wholly or partly to the responsibilities that cause the person to be an accountable person of the significant related entity.

For when bodies corporate are related, see section 8.