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The chief executives of Australia’s major banking institutions will be required to give an undertaking that their organisations are compliant with the new Financial Claims Scheme (FCS), which will be administered by the Australian Prudential Regulation Authority (APRA).
The imposition on the CEOs has been made clear by APRA in a discussion paper released this month. The paper deals with the new FCS, which was established in October 2008 and is designed to provide depositors with timely access to their deposits (up to a defined amount) in the event a bank becomes insolvent.
In a discussion paper on implementation of the FCS, the prudential regulator said that as part of the implementation of the FCS it was proposing that that the CEO of an Authorised Deposit-taking Institution (ADI) “be required to provide an attestation to the effect that the ADI has taken all necessary steps to ensure that it is compliant with FCS reporting requirements, including that the ADI is able to identify each unique account holder; aggregate protected accounts for each unique account holder; and provide the data required by APRA within the timeframes set out in the reporting requirements.
Implementation of the scheme is subject to ongoing consultation with the banking industry.
