It says larger and more complex entities \u201c\u2026must disclose additional quantitative information, including on payments to top executives and how they have placed a material weight on non-financial measures such as risk management.\u201d<\/p>\n APRA Chair John Lonsdale<\/strong> says the changes will enhance transparency and market discipline within the financial services industry and shine a light on the impact of risk failures and bad behaviour on remuneration outcomes.<\/p>\n \u201cThe financial services Royal Commission demonstrated conclusively how poorly designed and executed remuneration frameworks can lead to bad outcomes for the community by incentivising the wrong kinds of behaviours.\u201d<\/p>\n He says that one way to combat this is through heightened transparency.<\/p>\n …The disclosure obligations will shine additional light on how executives are incentivised…<\/p><\/blockquote>\n \u201cThe disclosure obligations will shine additional light on how executives are incentivised and on the consequences for poorly managed risk.\u201d<\/p>\n APRA notes that following industry feedback to the consultation launched mid-last year, the new disclosure requirements will now commence for all entities from their first full financial year following 1 January 2024.<\/p>\n It has also agreed to provide additional flexibility around the timing of disclosures with annual disclosures required within six months of an entity\u2019s financial year-end.<\/p>\n The regulator adds that as part of the consultation, it also proposed collecting and publishing more granular data on remuneration.<\/p>\n \u201cAPRA\u2019s response to submissions to its consultation on draft Reporting Standard CRS 511 Remuneration<\/em> will be delayed to ensure issues raised by industry are adequately addressed. The commencement date will be extended accordingly.\u201d<\/p>\n Separately, APRA will shortly publish the findings from an implementation review of CPS 511 to assist industry with implementing the new requirements.<\/p>\n![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2023\/08\/John-Lonsdale-2021-02-Executive-Headshots-APRA-website-John-1-e1690851361604.png\")
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