The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) together issued a letter outlining key observations on the banking industry's implementation of the Financial Accountability Regime (FAR), the regulators said in a joint statement Wednesday.

The letter highlights observations on the registration and notification submissions made by Australian banks since the inception of FAR on Mar. 15, the regulators said.

FAR imposes a stricter responsibility and accountability framework on APRA-regulated entities to improve the governance culture and risk management of these entities.

APRA and ASIC emphasized the need for banks to have a robust framework and the appropriate oversight to ensure submissions are complete and comply with FAR obligations, according to the statement.

The regulators warned that failure to comply could lead to regulatory action.

FAR will extend to the insurance and superannuation sectors in March 2025.

Shares of Commonwealth Bank of Australia (ASX:CBA), Westpac Banking (ASX:WBC, NZE:WBC), National Australia Bank (ASX:NAB), and ANZ Group (ASX:ANZ, NZE:ANZ) each rose almost 1% in recent Thursday trade.