AIST concurs with the proposal that the board of APRA-regulated entities should be responsible for the remuneration framework and its effective application. We support the principle that remuneration outcomes must be commensurate with performance and risk outcomes and that higher standard must be met for key roles.
AIST is concerned that the content of the revised draft Standard is overly focused on issues related to ADIs and APRA-regulated insurance entities and does not consider the different remuneration features of RSE licensees. Many of the specific requirements in the draft standard introduce complexity and cost in an already highly regulated sector and our concerns are that this will make it more difficult to deliver on members’ bests interests.
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