The Australian Government is seeking to better define the accountabilities of key financial services executives and introduce consequences such as civil penalties and remuneration constraints in an attempt to better align rewards with long-term performance, discourage inappropriate risk-taking amongst banking executives and respond to growing community concerns that financial institutions have a ‘poor compliance culture’.
On 3 August 2017 KPMG submitted a response to Treasury on their Consultation Paper.
The views expressed in our submission reflect KPMG's understanding of the key issues which need to be considered by Treasury and APRA based on the unique dynamics of the Australian financial services environment, our international experience and our understanding of the interests of market participants.
We have focused on responding to those areas of the paper where we had a distinctive point of view, including:
We believe the proposed BEAR provides an opportunity to further embed governance standards and enhance corporate culture to drive stronger long-term performance for shareholders and ensure more accountability to broader stakeholders.
Read our submission.