Financial Accountability Regime Act 2023

The variable remuneration of an accountable person of an accountable entity or a significant related entity is:

so much (if any) of the accountable person’s total remuneration as:

is conditional on the achievement of objectives; and

is not remuneration of a kind prescribed by the Regulator rules for the purposes of this subparagraph; and

so much (if any) of the accountable person’s total remuneration as is remuneration of a kind determined under paragraph (3)(a) or prescribed by the Regulator rules.

However, remuneration of a kind determined under paragraph (3)(b) is not variable remuneration of an accountable person of an accountable entity or a significant related entity.

The Regulator may, by written notice given to an accountable entity or a significant related entity, determine that:

remuneration of a particular kind, of one or more accountable persons, or of a class of accountable persons, of the accountable entity or significant related entity, is variable remuneration; or

remuneration of a particular kind, of one or more accountable persons, or of a class of accountable persons, of the accountable entity or significant related entity, is not variable remuneration.

A decision under this subsection is a reviewable decision (see Part 5 of Chapter 3).

The Regulator must give a copy of a determination it makes under subsection (3) to each person who, when the determination is made, is an accountable person covered by the determination.

If:

after a determination is made under subsection (3), a person becomes an accountable person of the accountable entity or significant related entity; and

the determination covers the person;

A notice under subsection (3) is not a legislative instrument.

Regulator rules made for the purposes of paragraph (1)(b), or a determination made for the purposes of paragraph (3)(a), may also identify the day, or a way of working out the day, on which the minimum deferral period for the variable remuneration starts.