Bank CEOs made responsible
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.
AUTHOR
Mike Taylor
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
