July 23 (Reuters) - Australia’s financial-sector watchdog on Tuesday proposed new rules around remuneration after a public inquiry last year blamed flawed incentives for widespread wrongdoing in the industry.
The Australian Prudential Regulation Authority (APRA) released a discussion paper suggesting reforms to “better align remuneration frameworks with the long-term interests of entities and their stakeholders, including customers and shareholders”.
The proposed changes were in “response to evidence that existing arrangements have been a factor driving poor consumer outcomes,” it added in a statement.
Among other suggestions, APRA proposed that financial performance measures should not comprise more than 50% of performance criteria for variable remuneration outcomes.
Reporting by Devika Syamnath in Bengaluru; Editing by Stephen Coates