Entities of the following kinds are accountable entities:

       (a)     an authorised deposit-taking institution (ADI);

      (b)     an authorised non-operating holding company (NOHC) of an ADI;

       (c)     a general insurer;

      (d)     an authorised NOHC of a general insurer;

       (e)     a life company;

       (f)     a registered NOHC of a life company;

       (g)     a private health insurer;

      (h)     an RSE licensee.

Note:       RSE is short for registrable superannuation entity.

An accountable person is primarily someone who has actual or effective senior executive responsibility for management or control of an accountable entity, or of a significant or substantial part or aspect of the operations of the entity or its corporate group. Rules made by the Minister can prescribe other responsibilities and positions that cause a person to be an accountable person.

An accountable entity must comply with:

       (a)     accountability obligations under Part 3; and

      (b)     key personnel obligations under Part 4, including to ensure that responsibilities covering all parts of its business are appropriately allocated to accountable persons who are registered with the Regulator and not disqualified; and

       (c)     obligations under Part 5 to defer a prescribed portion of the variable remuneration of its accountable persons to ensure compliance with their obligations; and

      (d)     obligations under Part 6 to notify the Regulator of matters relating to accountable persons and their responsibilities.

An accountable entity that fails to comply with any of these obligations is liable to a civil penalty.

Accountable persons also have accountability obligations under Part 3. Failure by an accountable person to comply with any of those obligations may lead to reduction of their variable remuneration or disqualification by the Regulator.

A foreign accountable entity is subject to obligations only to the extent that it operates a branch of the foreign accountable entity in Australia.