As a part of Australia's impending Financial Accountability Regime (FAR), financial firms will be required to withhold 40% of their directors' and top executives' bonuses for four years, then to be disbursed only if satisfactory conduct standards are met.
The FAR will not, however, include the provision allowing regulators to fine executives up to $1.1 million, which was present in an earlier draft of the bill. This removal came following lobbying from banks, which were worried that fines could make it more difficult to recruit senior executives. They also expressed concern that the rules might make banks excessively risk-averse.
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