Commonwealth Numbered Acts Commonwealth Numbered Acts(1) The accountability obligations of an accountable person of an accountable entity, or of a significant related entity of an accountable entity, are to conduct the responsibilities of their position as an accountable person:
(a) by acting with honesty and integrity, and with due skill, care and diligence; and
(b) by dealing with the Regulator in an open, constructive and cooperative way; and
(c) by taking reasonable steps in conducting those responsibilities to prevent matters from arising that would (or would be likely to) adversely affect the prudential standing or prudential reputation of the accountable entity; and
(d) by taking reasonable steps in conducting those responsibilities to prevent matters from arising that would (or would be likely to) result in a material contravention by the accountable entity of any of the following:
(i) this Act;
(ii) the Banking Act 1959 ;
(iii) the credit legislation (within the meaning of the National Consumer Credit Protection Act 2009 );
(iv) the Financial Sector (Collection of Data) Act 2001 ;
(v) the financial services law (within the meaning of section 761A of the Corporations Act 2001 );
(vi) the Insurance Act 1973 ;
(vii) the Life Insurance Act 1995 ;
(viii) the Private Health Insurance (Prudential Supervision) Act 2015 ;
(ix) the Superannuation Industry (Supervision) Act 1993 ;
(x) regulations, instruments, directions or orders made under a law referred to in any of subparagraphs (i) to (ix).
Example: Cherie is an accountable person of an ADI and has senior executive responsibility for management of the ADI's financial resources. Cherie must take reasonable steps to ensure that the management of those resources complies with the requirements of laws, instruments, directions and orders referred to in subparagraphs (d)(i) to (x) that apply in relation to financial resource management.
Note 1: See also section 22 (taking reasonable steps).
Note 2: For protection for whistleblowers, see Part 9.4AAA of the Corporations Act 2001 .
(2) To the extent that 2 or more accountable persons of an accountable entity or significant related entity have the same responsibility, each of them has the accountability obligations under subsection (1) in relation to that responsibility to the same extent as if it were solely that person's responsibility.
Note: Under section 65, the Regulator may direct an accountable entity to reallocate a responsibility of an accountable person.