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This is a Bill, not an Act. For current law, see the Acts databases.
2022-2023
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Financial Accountability Regime
(Consequential Amendments) Bill 2023
No. , 2023
(Treasury)
A Bill for an Act to deal with consequential
amendments and transitional matters arising from
the enactment of the Financial Accountability
Regime Act 2023, and for related purposes
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Consequential amendments
4
Part 1--Amendments for the start of the financial
accountability regime
4
Australian Prudential Regulation Authority Act 1998
4
Australian Securities and Investments Commission Act 2001
7
Banking Act 1959
10
Corporations Act 2001
11
Financial Regulator Assessment Authority Act 2021
12
Financial Sector (Transfer and Restructure) Act 1999
12
Insurance Act 1973
12
Life Insurance Act 1995
14
National Consumer Credit Protection Act 2009
17
Payment Systems and Netting Act 1998
18
Private Health Insurance (Prudential Supervision) Act 2015
18
Superannuation Industry (Supervision) Act 1993
20
Part 2--Amendments for the end of the banking executive
accountability regime
22
Australian Prudential Regulation Authority Act 1998
22
Banking Act 1959
22
Schedule 2--Application, saving and transitional provisions
24
Part 1--Preliminary
24
Part 2--Banking sector
26
Division 1--Key personnel obligations
26
Division 2--Deferred remuneration obligations
30
Division 3--Notification obligations
32
Division 4--Regulatory powers and enforcement
33
ii
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Part 3--Other sectors
37
Division 1--Key personnel obligations
37
Division 2--Deferred remuneration obligations
38
Division 3--Insurance
38
Division 4--Life insurance
38
Division 5--Private health insurance
39
Division 6--Superannuation
39
Part 4--APRA and ASIC
40
Division 1--Transition from the BEAR
40
Division 2--Application of the FAR
41
Part 5--Transitional rules
42
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
1
A Bill for an Act to deal with consequential
1
amendments and transitional matters arising from
2
the enactment of the Financial Accountability
3
Regime Act 2023, and for related purposes
4
The Parliament of Australia enacts:
5
1 Short title
6
This Act is the
Financial Accountability Regime (Consequential
7
Amendments) Act 2023
.
8
2 Commencement
9
(1) Each provision of this Act specified in column 1 of the table
10
commences, or is taken to have commenced, in accordance with
11
2
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
column 2 of the table. Any other statement in column 2 has effect
1
according to its terms.
2
3
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day after this Act receives the Royal
Assent.
2. Schedule 1,
Part 1
At the same time as the
Financial
Accountability Regime Act 2023
commences.
However, the provisions do not commence
at all if that Act does not commence.
3. Schedule 1,
Part 2
The day that is 6 months after the
Financial
Accountability Regime Act 2023
commences.
However, the provisions do not commence
at all if that Act does not commence.
4. Schedule 2
At the same time as the
Financial
Accountability Regime Act 2023
commences.
However, the provisions do not commence
at all if that Act does not commence.
Note:
This table relates only to the provisions of this Act as originally
4
enacted. It will not be amended to deal with any later amendments of
5
this Act.
6
(2) Any information in column 3 of the table is not part of this Act.
7
Information may be inserted in this column, or information in it
8
may be edited, in any published version of this Act.
9
3 Schedules
10
Legislation that is specified in a Schedule to this Act is amended or
11
repealed as set out in the applicable items in the Schedule
12
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
3
concerned, and any other item in a Schedule to this Act has effect
1
according to its terms.
2
Schedule 1
Consequential amendments
Part 1
Amendments for the start of the financial accountability regime
4
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Schedule 1--Consequential amendments
1
Part 1--Amendments for the start of the financial
2
accountability regime
3
Australian Prudential Regulation Authority Act 1998
4
1 Subsection 3(1) (after paragraph (b) of the definition of
5
prudential regulation framework law)
6
Insert:
7
(ba) the
Financial Accountability Regime Act 2023
;
8
(bb) the
Financial Accountability Regime (Consequential
9
Amendments) Act 2023
;
10
2 Section 48
11
Omit "Under", substitute "(1) Under".
12
3 At the end of section 48
13
Add:
14
(2) Subsection (1) does not apply to an appointment made under, or for
15
the purposes of, the
Financial Accountability Regime Act 2023
.
16
4 Paragraph 53(1)(d)
17
Repeal the paragraph, substitute:
18
(d) amounts of any fees, charges or penalties paid to APRA, on
19
behalf of the Commonwealth, under section 51 or any other
20
law of the Commonwealth except the following:
21
(i) Part 3A of the
Financial Institutions Supervisory Levies
22
Collection Act 1998
;
23
(ii) the
Financial Accountability Regime Act 2023
;
24
5 Subsection 56(1) (after paragraph (cb) of the definition of
25
protected document)
26
Insert:
27
Consequential amendments
Schedule 1
Amendments for the start of the financial accountability regime
Part 1
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
5
or (cc) a person in relation to whom information is, or was, required
1
to be given under the
Financial Accountability Regime Act
2
2023
;
3
6 Subsection 56(1) (after paragraph (d) of the definition of
4
protected document)
5
Insert:
6
(da) a document given or produced to ASIC under, or for the
7
purposes of, a provision of the
Financial Accountability
8
Regime Act 2023
, other than a document given or produced
9
to ASIC by APRA; or
10
7 Subsection 56(1) (after paragraph (cb) of the definition of
11
protected information)
12
Insert:
13
or (cc) a person in relation to whom information is, or was, required
14
to be given under the
Financial Accountability Regime Act
15
2023
;
16
8 Subsection 56(1) (after paragraph (d) of the definition of
17
protected information)
18
Insert:
19
(da) information given or produced to ASIC under, or for the
20
purposes of, a provision of the
Financial Accountability
21
Regime Act 2023
, other than information given or produced
22
to ASIC by APRA; or
23
9 Paragraph 56(2)(c)
24
Omit "or (7F)", substitute ", (7F), (7G), (7H), (7J), (7K) or (7L)".
25
10 After subsection 56(7F)
26
Insert:
27
(7G) It is not an offence if:
28
(a) the disclosure of protected information or the production of a
29
protected document is to an accountable entity (within the
30
meaning of the
Financial Accountability Regime Act 2023
);
31
and
32
Schedule 1
Consequential amendments
Part 1
Amendments for the start of the financial accountability regime
6
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
(b) the information, or the information contained in the
1
document, as the case may be, is information contained in the
2
register kept under section 40 of the
Financial Accountability
3
Regime Act 2023
.
4
Note:
A defendant bears an evidential burden in relation to the matters in
5
subsection (7G) (see subsection 13.3(3) of the
Criminal Code
).
6
(7H) It is not an offence if:
7
(a) the disclosure of protected information or the production of a
8
protected document is to an individual; and
9
(b) the information, or the information contained in the
10
document, as the case may be, is only personal information
11
about the individual; and
12
(c) the information, or the information contained in the
13
document, as the case may be, is information contained in the
14
register kept under section 40 of the
Financial Accountability
15
Regime Act 2023
.
16
Note:
A defendant bears an evidential burden in relation to the matters in
17
subsection (7H) (see subsection 13.3(3) of the
Criminal Code
).
18
(7J) It is not an offence if:
19
(a) the disclosure of protected information or the production of a
20
protected document is by APRA; and
21
(b) the information, or the information contained in the
22
document, as the case may be, is information that discloses:
23
(i) whether a person is disqualified under section 42 of the
24
Financial Accountability Regime Act 2023
; or
25
(ii) a decision made under Division 2 of Part 3 of Chapter 3
26
of that Act (which is about disqualification of
27
accountable persons), or the reasons for such a decision.
28
Note:
A defendant bears an evidential burden in relation to the matters in
29
subsection (7J) (see subsection 13.3(3) of the
Criminal Code)
.
30
(7K) It is not an offence if the disclosure of protected information or the
31
production of a protected document by a person is in accordance
32
with section 39 of the
Financial Accountability Regime Act 2023
.
33
Note:
A defendant bears an evidential burden in relation to the matters in
34
subsection (7K) (see subsection 13.3(3) of the
Criminal Code
).
35
(7L) It is not an offence if:
36
Consequential amendments
Schedule 1
Amendments for the start of the financial accountability regime
Part 1
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
7
(a) the disclosure of protected information or the production of a
1
protected document is by ASIC, for the purposes of the
2
performance of ASIC's functions, or the exercise of ASIC's
3
powers; and
4
(b) the protected information was disclosed previously to ASIC,
5
or the protected document was produced previously to ASIC,
6
in accordance with section 39 of the
Financial Accountability
7
Regime Act 2023
.
8
Note:
A defendant bears an evidential burden in relation to the matters in
9
subsection (7L) (see subsection 13.3(3) of the
Criminal Code
).
10
11 Paragraph 56(12)(a)
11
Omit "and (7F)", substitute ", (7F), (7G), (7H), (7J), (7K) and (7L)".
12
12 At the end of subsection 58(4)
13
Add:
14
; (d) section 101 or 102 of the
Financial Accountability Regime
15
Act 2023
.
16
13 After paragraph 59(2)(ba)
17
Insert:
18
(bb) information about investigations (including joint
19
investigations) conducted by APRA under Division 1 of
20
Part 4 of Chapter 3 of the
Financial Accountability Regime
21
Act 2023
during the period;
22
14 After subsection 59(3)
23
Insert:
24
(4) Paragraph (2)(bb) does not authorise the inclusion in the annual
25
report of information with respect to the affairs of a particular
26
person.
27
Australian Securities and Investments Commission Act 2001
28
15 Subsection 12A(1)
29
Omit "Acts".
30
Schedule 1
Consequential amendments
Part 1
Amendments for the start of the financial accountability regime
8
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
16 At the end of subsection 12A(1)
1
Add:
2
; (m) the
Financial Accountability Regime Act 2023
;
3
(n) the
Financial Accountability Regime (Consequential
4
Amendments) Act 2023
.
5
17 After subsection 127(6)
6
Insert:
7
(7) A person (the
officer
) commits an offence if:
8
(a) the officer is or has been:
9
(i) a member of ASIC; or
10
(ii) a staff member; or
11
(iii) a Commonwealth officer within the meaning of the
12
Crimes Act 1914
; and
13
(b) the officer intentionally or recklessly, and directly or
14
indirectly:
15
(i) discloses information to any person or to a court; or
16
(ii) produces a document to any person or to a court; and
17
(c) if subparagraph (b)(i) applies--the information is protected
18
information disclosed to, or obtained by, ASIC for the
19
purposes of a function (a
FAR-related function
) conferred
20
on ASIC by:
21
(i) the
Financial Accountability Regime Act 2023
; or
22
(ii) the
Financial Accountability Regime (Consequential
23
Amendments) Act 2023
; and
24
(d) if subparagraph (b)(ii) applies--the document:
25
(i) is protected information and was given or produced to
26
ASIC for the purposes of a FAR-related function; or
27
(ii) contains protected information disclosed to, or obtained
28
by, ASIC for the purposes of a FAR-related function;
29
and
30
(e) the officer acquired the information, or has or had access to
31
the document, as the case may be, in the course of the
32
officer's duties as a member of ASIC, a staff member or a
33
Commonwealth officer within the meaning of the
Crimes Act
34
1914
.
35
Consequential amendments
Schedule 1
Amendments for the start of the financial accountability regime
Part 1
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
9
Penalty: Imprisonment for 2 years.
1
(7A) Subsection (7) does not apply if the disclosure or production
2
constitutes authorised disclosure of the protected information for
3
the purposes of subsection (1).
4
Note:
A defendant bears an evidential burden in relation to the matter in this
5
subsection (see subsection 13.3(3) of the
Criminal Code
).
6
(8) A document is an exempt document for the purposes of section 38
7
of the
Freedom of Information Act 1982
if the document:
8
(a) is protected information and was given or produced to ASIC;
9
or
10
(b) contains protected information disclosed to, or obtained by,
11
ASIC;
12
for the purposes of a function conferred on ASIC by:
13
(c) the
Financial Accountability Regime Act 2023
; or
14
(d) the
Financial Accountability Regime (Consequential
15
Amendments) Act 2023
.
16
18 After paragraph 136(1)(da)
17
Insert:
18
(db) information about investigations (including joint
19
investigations) conducted by ASIC under Division 1 of Part 4
20
of Chapter 3 of the
Financial Accountability Regime Act
21
2023
during the period;
22
19 After subsection 136(2A)
23
Insert:
24
(3) Paragraph (1)(db) does not authorise the inclusion in the annual
25
report of information with respect to the affairs of a particular
26
person.
27
20 In the appropriate position
28
Insert:
29
Schedule 1
Consequential amendments
Part 1
Amendments for the start of the financial accountability regime
10
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Part 38--Transitional provisions relating to the
1
Financial Accountability Regime
2
(Consequential Amendments) Act 2023
3
4
340 Application--confidentiality
5
The amendment of section 12A made by Part 1 of Schedule 1 to
6
the
Financial Accountability Regime (Consequential Amendments)
7
Act 2023
, so far as it relates to the definition of protected
8
information in subsection 127(9) of this Act, applies in relation to
9
any use or disclosure of information after the commencement of
10
that Part, whether ASIC obtained the information before or after
11
that commencement.
12
341 Information to be included in ASIC's annual report
13
The amendment of section 136 made by Part 1 of Schedule 1 to the
14
Financial Accountability Regime (Consequential Amendments) Act
15
2023
applies to reports on ASIC's investigations during the
16
financial year ending on 30 June 2024, and later financial years.
17
Banking Act 1959
18
21 After subparagraph 9A(2)(b)(ii)
19
Insert:
20
(iia) a requirement of the
Financial Accountability Regime
21
Act 2023
;
22
22 After subparagraph 11AB(2)(a)(ii)
23
Insert:
24
(iia) a requirement of the
Financial Accountability Regime
25
Act 2023
;
26
23 Paragraph 15D(1)(a)
27
After "the
Financial Sector (Collection of Data) Act 2001
", insert "or
28
the
Financial Accountability Regime Act 2023
".
29
Consequential amendments
Schedule 1
Amendments for the start of the financial accountability regime
Part 1
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
11
24 Paragraph 15D(1)(b)
1
Omit "that Act", substitute "those Acts".
2
25 At the end of subsection 16B(1)
3
Add "or the
Financial Accountability Regime Act 2023
".
4
26 Subparagraph 16BA(6)(a)(i)
5
Omit "the regulations or the
Financial Sector (Collection of Data) Act
6
2001
", substitute "the regulations, the
Financial Sector (Collection of
7
Data) Act 2001
or the
Financial Accountability Regime Act 2023
".
8
27 Section 16C
9
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
10
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
11
or the
Financial Accountability Regime Act 2023
".
12
28 Paragraph 17(2)(a)
13
Omit "this Act or the prudential standards", substitute "this Act, the
14
prudential standards or the
Financial Accountability Regime Act 2023
".
15
29 After subparagraph 20(1)(a)(ii)
16
Insert:
17
(iia) the
Financial Accountability Regime Act 2023
; or
18
30 Section 69BA
19
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
20
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
21
or the
Financial Accountability Regime Act 2023
".
22
Corporations Act 2001
23
31 After subparagraph 1317AA(5)(c)(iii)
24
Insert:
25
(iiia) the
Financial Accountability Regime Act 2023
;
26
Schedule 1
Consequential amendments
Part 1
Amendments for the start of the financial accountability regime
12
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Financial Regulator Assessment Authority Act 2021
1
32 Subparagraph 40(3)(a)(iv)
2
Omit "or".
3
33 At the end of paragraph 40(3)(a)
4
Add:
5
(v) subsection 72(1) or section 73 of the
Financial
6
Accountability Regime Act 2023
; or
7
Financial Sector (Transfer and Restructure) Act 1999
8
34 At the end of paragraph 36B(1A)(a)
9
Add:
10
(iv) section 64 of the
Financial Accountability Regime Act
11
2023
;
12
Insurance Act 1973
13
35 After subparagraph 15(1)(a)(ii)
14
Insert:
15
(iiaa) a requirement of the
Financial Accountability Regime
16
Act 2023
; or
17
36 After subparagraph 21(1)(a)(ii)
18
Insert:
19
(iiaa) a requirement of the
Financial Accountability Regime
20
Act 2023
; or
21
37 After subparagraph 25(1)(a)(ii)
22
Insert:
23
(iia) the
Financial Accountability Regime Act 2023
; or
24
38 After paragraph 43(2)(a)
25
Insert:
26
(aa) has failed to comply with a requirement of the
Financial
27
Accountability Regime Act 2023
; or
28
Consequential amendments
Schedule 1
Amendments for the start of the financial accountability regime
Part 1
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
13
39 After subparagraph 44(1)(a)(i)
1
Insert:
2
(ia) the person has failed to comply with a requirement of
3
the
Financial Accountability Regime Act 2023
;
4
40 Paragraph 44(4)(a)
5
Omit "this Act and the prudential standards", substitute "this Act, the
6
prudential standards and the
Financial Accountability Regime Act
7
2023
".
8
41 After subparagraphs 48(1)(a)(i) and (2)(a)(i)
9
Insert:
10
(ia) the
Financial Accountability Regime Act 2023
; or
11
42 At the end of subsection 49(1)
12
Add "or the
Financial Accountability Regime Act 2023
".
13
43 Subparagraph 49A(6)(a)(iv)
14
Omit "this Act or a requirement under the
Financial Sector (Collection
15
of Data) Act 2001
", substitute "this Act, a requirement under the
16
Financial Sector (Collection of Data) Act 2001
or a requirement of the
17
Financial Accountability Regime Act 2023
".
18
44 Section 49B
19
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
20
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
21
or the
Financial Accountability Regime Act 2023
".
22
45 After subparagraph 62M(1)(a)(iv)
23
Insert:
24
(ivaa) the general insurer has failed to comply with a
25
requirement of the
Financial Accountability Regime Act
26
2023
; or
27
46 Subsection 62W(1)
28
Repeal the subsection, substitute:
29
(1) None of the matters mentioned in subsection (2) affect:
30
Schedule 1
Consequential amendments
Part 1
Amendments for the start of the financial accountability regime
14
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
(a) the continued operation of other Parts of this Act in relation
1
to a general insurer; or
2
(b) the operation of the
Financial Sector (Collection of Data) Act
3
2001
or the
Financial Accountability Regime Act 2023
in
4
relation to a general insurer; or
5
(c) the obligation of a general insurer to comply with those other
6
Parts and those Acts.
7
47 Subsection 62ZOY(1)
8
Repeal the subsection, substitute:
9
(1) None of the matters mentioned in subsection (2) affect:
10
(a) the continued operation of other provisions of this Act in
11
relation to a body corporate; or
12
(b) the operation of the
Financial Sector (Collection of Data) Act
13
2001
or the
Financial Accountability Regime Act 2023
in
14
relation to a body corporate; or
15
(c) the obligation of a body corporate to comply with those other
16
provisions and those Acts.
17
48 Section 129AA
18
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
19
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
20
or the
Financial Accountability Regime Act 2023
".
21
Life Insurance Act 1995
22
49 Paragraph 21(3)(e)
23
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
24
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
25
or the
Financial Accountability Regime Act 2023
".
26
50 After subparagraph 26(1)(a)(ii)
27
Insert:
28
(iia) a requirement of the
Financial Accountability Regime
29
Act 2023
; or
30
Consequential amendments
Schedule 1
Amendments for the start of the financial accountability regime
Part 1
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
15
51 After subparagraph 28C(1)(a)(ii)
1
Insert:
2
(iiaa) a requirement of the
Financial Accountability Regime
3
Act 2023
; or
4
52 After paragraph 85(1)(b)
5
Insert:
6
(ba) the person has failed to comply with a requirement of the
7
Financial Accountability Regime Act 2023
; or
8
53 Paragraph 88(1)(a)
9
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
10
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
11
or the
Financial Accountability Regime Act 2023
".
12
54 Subparagraph 88(3)(a)(i)
13
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
14
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
15
or the
Financial Accountability Regime Act 2023
".
16
55 Section 88A
17
Omit "this Act or under the
Financial Sector (Collection of Data) Act
18
2001
", substitute "this Act, the
Financial Sector (Collection of Data)
19
Act 2001
or the
Financial Accountability Regime Act 2023
".
20
56 Subsection 88B(1)
21
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
22
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
23
or the
Financial Accountability Regime Act 2023
".
24
57 Paragraph 89(2)(a)
25
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
26
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
27
or the
Financial Accountability Regime Act 2023
".
28
58 After paragraph 94(1)(b)
29
Insert:
30
Schedule 1
Consequential amendments
Part 1
Amendments for the start of the financial accountability regime
16
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
(ba) the person has failed to comply with a requirement of the
1
Financial Accountability Regime Act 2023
; or
2
59 Paragraph 98(1)(a)
3
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
4
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
5
or the
Financial Accountability Regime Act 2023
".
6
60 Subparagraph 98(3)(a)(i)
7
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
8
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
9
or the
Financial Accountability Regime Act 2023
".
10
61 Section 98A
11
Omit "this Act or under the
Financial Sector (Collection of Data) Act
12
2001
", substitute "this Act, the
Financial Sector (Collection of Data)
13
Act 2001
or the
Financial Accountability Regime Act 2023
".
14
62 Subsection 98B(1)
15
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
16
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
17
or the
Financial Accountability Regime Act 2023
".
18
63 Paragraph 99(2)(a)
19
After "this Act", insert "or the
Financial Accountability Regime Act
20
2023
".
21
64 Paragraph 125A(2)(c)
22
Omit "the regulations or the
Financial Sector (Collection of Data) Act
23
2001
", substitute "the regulations, the
Financial Sector (Collection of
24
Data) Act 2001
or the
Financial Accountability Regime Act 2023
".
25
65 Subsection 166(1)
26
Repeal the subsection, substitute:
27
(1) None of the matters mentioned in subsection (2) affect:
28
(a) the continued operation of other Parts of this Act in relation
29
to a life company; or
30
Consequential amendments
Schedule 1
Amendments for the start of the financial accountability regime
Part 1
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
17
(b) the operation of the
Financial Sector (Collection of Data)
1
Act 2001
or the
Financial Accountability Regime Act 2023
in
2
relation to a life company; or
3
(c) the obligation of a life company to comply with those other
4
Parts and those Acts.
5
66 Subsection 179AY(1)
6
Repeal the subsection, substitute:
7
(1) None of the matters mentioned in subsection (2) affect:
8
(a) the continued operation of other provisions of this Act in
9
relation to a body corporate; or
10
(b) the operation of the
Financial Sector (Collection of Data) Act
11
2001
or the
Financial Accountability Regime Act 2023
in
12
relation to a body corporate; or
13
(c) the obligation of a body corporate to comply with those other
14
provisions and those Acts.
15
67 Paragraph 245(1)(a)
16
Omit "this Act or the
Life Insurance Act 1945
", substitute "this Act, the
17
repealed
Life Insurance Act 1945
or the
Financial Accountability
18
Regime Act 2023
".
19
68 Subsection 248(2)
20
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
21
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
22
or the
Financial Accountability Regime Act 2023
".
23
National Consumer Credit Protection Act 2009
24
69 Subsection 5(1) (definition of large ADI)
25
Omit "has the same meaning as in the
Banking Act 1959
", substitute
26
"means an ADI of a kind determined under subsection (1A)".
27
70 After subsection 5(1)
28
Insert:
29
(1A) The Minister may, by legislative instrument, determine the kinds of
30
ADIs that are large ADIs.
31
Schedule 1
Consequential amendments
Part 1
Amendments for the start of the financial accountability regime
18
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Payment Systems and Netting Act 1998
1
71 Section 5 (after paragraph (b) of the definition of direction
2
stay provision)
3
Insert:
4
(baa) subsection 77(2) of the
Financial Accountability Regime Act
5
2023
;
6
72 Section 5 (before paragraph (fc) of the definition of
7
specified provisions)
8
Insert:
9
(fca) subsections 77(3) and (4) of the
Financial Accountability
10
Regime Act 2023
;
11
73 Section 5 (after paragraph (e) of the definition of specified
12
stay provision)
13
Insert:
14
(eaa) subsection 77(2) of the
Financial Accountability Regime Act
15
2023
;
16
Private Health Insurance (Prudential Supervision) Act 2015
17
74 After subsection 21(1)
18
Insert:
19
(1A) APRA may, in writing, cancel the registration of a private health
20
insurer if APRA is satisfied that the private health insurer has
21
failed to comply with a requirement of the
Financial
22
Accountability Regime Act 2023
.
23
75 Subsections 84(1) and (2)
24
Omit "or of the
Private Health Insurance Act 2007
", substitute "the
25
Private Health Insurance Act 2007
or the
Financial Accountability
26
Regime Act 2023
".
27
76 After paragraph 107(2)(c)
28
Insert:
29
; and (d) the
Financial Accountability Regime Act 2023
.
30
Consequential amendments
Schedule 1
Amendments for the start of the financial accountability regime
Part 1
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
19
77 Subsection 107(2) (note 2)
1
Omit "paragraphs (b) and (c)", substitute "paragraphs (b), (c) and (d)".
2
78 Paragraph 110(1)(a)
3
Omit "the
Private Health Insurance Act 2007
or the
Financial Sector
4
(Collection of Data) Act 2001
", substitute "the
Private Health
5
Insurance Act 2007
, the
Financial Sector (Collection of Data) Act 2001
6
or the
Financial Accountability Regime Act 2023
".
7
79 Subparagraph 110(5)(a)(i)
8
Omit "the
Private Health Insurance Act 2007
or the
Financial Sector
9
(Collection of Data) Act 2001
", substitute "the
Private Health
10
Insurance Act 2007
, the
Financial Sector (Collection of Data) Act 2001
11
or the
Financial Accountability Regime Act 2023
".
12
80 Subsections 111(1) and 112(1)
13
Omit "the
Private Health Insurance Act 2007
or the
Financial Sector
14
(Collection of Data) Act 2001
", substitute "the
Private Health
15
Insurance Act 2007
, the
Financial Sector (Collection of Data) Act 2001
16
or the
Financial Accountability Regime Act 2023
".
17
81 Paragraph 113(2)(a)
18
Omit "the
Private Health Insurance Act 2007
or the
Financial Sector
19
(Collection of Data) Act 2001
", substitute "the
Private Health
20
Insurance Act 2007
, the
Financial Sector (Collection of Data) Act 2001
21
or the
Financial Accountability Regime Act 2023
".
22
82 After subparagraph 119(1)(a)(iii)
23
Insert:
24
(iiia) the
Financial Accountability Regime Act 2023
; or
25
83 After subparagraph 120(4)(b)(iii)
26
Insert:
27
(iiia) the
Financial Accountability Regime Act 2023
;
28
84 Subsection 168(1) (after table item 3)
29
Insert:
30
31
Schedule 1
Consequential amendments
Part 1
Amendments for the start of the financial accountability regime
20
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
3A
to cancel the registration of a private health
insurer
subsection 21(1A)
Superannuation Industry (Supervision) Act 1993
1
85 Subsection 10(1) (after paragraph (c) of the definition of
2
RSE licensee law)
3
Insert:
4
(ca) the
Financial Accountability Regime Act 2023
; and
5
86 Section 38A (before paragraph (ab) of the definition of
6
regulatory provision)
7
Insert:
8
(aba) a provision of the
Financial Accountability Regime Act 2023
;
9
or
10
87 Paragraph 126H(3)(a)
11
Omit "this Act or the
Financial Sector (Collection of Data) Act 2001
",
12
substitute "this Act, the
Financial Sector (Collection of Data) Act 2001
13
or the
Financial Accountability Regime Act 2023
".
14
88 Subparagraph 129(1)(a)(ii)
15
After "
Financial Sector (Collection of Data) Act 2001
", insert "or the
16
Financial Accountability Regime Act 2023
".
17
89 Section 130A
18
Omit "the prudential standards or the
Financial Sector (Collection of
19
Data) Act 2001
", substitute "the prudential standards, the
Financial
20
Sector (Collection of Data) Act 2001
or the
Financial Accountability
21
Regime Act 2023
".
22
90 At the end of paragraph 130D(4)(a)
23
Add:
24
(iv) any duties required to be performed under the
Financial
25
Accountability Regime Act 2023
; or
26
Consequential amendments
Schedule 1
Amendments for the start of the financial accountability regime
Part 1
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
21
91 Paragraph 131AA(2)(c)
1
Omit "the prudential standards or the
Financial Sector (Collection of
2
Data) Act 2001
", substitute "the prudential standards, the
Financial
3
Sector (Collection of Data) Act 2001
or the
Financial Accountability
4
Regime Act 2023
".
5
92 At the end of paragraph 131A(1)(a)
6
Add:
7
(iv) any duties required to be performed under the
Financial
8
Accountability Regime Act 2023
; or
9
93 Subparagraph 313(1)(a)(ii)
10
Omit "this Act or under the
Financial Sector (Collection of Data) Act
11
2001
", substitute "this Act, or under the
Financial Sector (Collection of
12
Data) Act 2001
or the
Financial Accountability Regime Act 2023
,".
13
Schedule 1
Consequential amendments
Part 2
Amendments for the end of the banking executive accountability regime
22
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Part 2--Amendments for the end of the banking
1
executive accountability regime
2
Australian Prudential Regulation Authority Act 1998
3
94 Subsection 56(1) (paragraph (cb) of the definition of
4
protected document)
5
Repeal the paragraph.
6
95 Subsection 56(1) (paragraph (cb) of the definition of
7
protected information)
8
Repeal the paragraph.
9
96 Paragraph 56(2)(c)
10
Omit "(7D), (7E), (7F),".
11
97 Subsections 56(7D), (7E) and (7F)
12
Repeal the subsections.
13
98 Paragraph 56(12)(a)
14
Omit "(7D), (7E), (7F),".
15
Banking Act 1959
16
99 Paragraph 2A(2)(e)
17
Repeal the paragraph.
18
100 Subsection 5(1) (definition of accountable person)
19
Repeal the definition.
20
101 Subsection 5(1) (paragraph (g) of the definition of
21
direction under this Act)
22
Omit "31F;", substitute "31F.".
23
Consequential amendments
Schedule 1
Amendments for the end of the banking executive accountability regime
Part 2
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
23
102 Subsection 5(1) (paragraph (h) of the definition of
1
direction under this Act)
2
Repeal the paragraph.
3
103 Subsection 5(1)
4
Repeal the following definitions:
5
(a) definition of
large ADI
;
6
(b) definition of
medium ADI
;
7
(c) definition of
non-ADI holding company
;
8
(d) definition of
remuneration
;
9
(e) definition of
small ADI
;
10
(f) definition of
variable remuneration
.
11
104 Subsection 11AF(1AC)
12
Repeal the subsection.
13
105 Paragraphs 11CG(1)(b) and (2)(a)
14
Omit ", 29 or 37DB", substitute "or 29".
15
106 Subsection 11CG(2A)
16
Omit ", 29 or 37DB", substitute "or 29".
17
107 Part IIAA
18
Repeal the Part.
19
Schedule 2
Application, saving and transitional provisions
Part 1
Preliminary
24
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Schedule 2--Application, saving and
1
transitional provisions
2
Part 1--Preliminary
3
1 Definitions
4
(1)
In this Schedule:
5
banking start time
means the time when Part 2 of Schedule 1
6
commences.
7
BEAR
means:
8
(a) Part IIAA of the old Banking Act; and
9
(b) any instruments made under that Part as in force immediately
10
before the banking start time; and
11
(c) any sections of the old Banking Act that apply in relation to a
12
provision of that Part.
13
FAR Act
means the
Financial Accountability Regime Act 2023
.
14
FAR start time
for a body corporate that is an accountable entity under
15
subsection 9(3) of the FAR Act means the time when the body
16
corporate starts to be an accountable entity, as determined under
17
subsection 9(4) of the FAR Act.
18
old Banking Act
means the
Banking Act 1959
, and any instruments
19
made under that Act, as in force immediately before the banking start
20
time.
21
(2)
Expressions used in this Schedule that are defined for the purposes of
22
the FAR Act, and used in relation to that Act, have the same meaning as
23
in that Act.
24
(3)
Expressions used in this Schedule that were defined for the purposes of
25
the old Banking Act, and are used in relation to that Act, have the same
26
meaning as in that Act.
27
2 Section 7 of the Acts Interpretation Act 1901
28
This Schedule does not limit the effect of section 7 of the
Acts
29
Interpretation Act 1901
as it applies in relation to the repeals made by
30
this Act.
31
Application, saving and transitional provisions
Schedule 2
Preliminary
Part 1
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
25
3 Compensation for acquisition of property
1
(1)
If the operation of the old Banking Act, or of this Act or the FAR Act as
2
it applies under this Act, would result in an acquisition of property
3
(within the meaning of paragraph 51(xxxi) of the Constitution) from a
4
person otherwise than on just terms (within the meaning of that
5
paragraph), the Commonwealth is liable to pay a reasonable amount of
6
compensation to the person.
7
(2)
Subitem (1) applies whether the acquisition of property occurred before
8
or occurs after the commencement of this Part.
9
(3)
If the Commonwealth and the person do not agree on the amount of the
10
compensation, the person may institute proceedings in:
11
(a) the Federal Court of Australia; or
12
(b) the Supreme Court of a State or Territory;
13
for the recovery from the Commonwealth of such reasonable amount of
14
compensation as the court determines.
15
Schedule 2
Application, saving and transitional provisions
Part 2
Banking sector
26
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Part 2--Banking sector
1
Division 1
--Key personnel obligations
2
4 Persons registered under BEAR
3
When this item applies
4
(1)
This item applies in relation to a person and an ADI if, immediately
5
before the banking start time:
6
(a) the person is an accountable person of the ADI, or of a
7
subsidiary of the ADI, under the old Banking Act; and
8
(b) the person is registered under section 37HA of the old
9
Banking Act.
10
Accountable persons taken to be registered under FAR
11
(2)
If, at the banking start time, the person is an accountable person of the
12
ADI or the subsidiary under section 10 of the FAR Act, then the person
13
is taken from the banking start time to be registered under the FAR Act
14
as an accountable person in respect of the ADI or the subsidiary.
15
Note 1: If the person was an accountable person of a subsidiary of the ADI, and the subsidiary is
16
not a significant related entity of the ADI under the FAR Act, then the person may not
17
be an accountable person of the ADI or the subsidiary under the FAR Act.
18
Note 2: See also item 13 (old accountability statement taken to be new accountability
19
statement).
20
Persons ceasing to be accountable persons
21
(3)
If, at the banking start time, the person is
not
an accountable person of
22
the ADI or the subsidiary under section 10 of the FAR Act, then:
23
(a) the person is taken to have ceased to be an accountable
24
person of the ADI or the subsidiary for the purposes of the
25
paragraph 32(a) of the FAR Act; and
26
(b) for the purposes of subparagraph 31(1)(a)(i) of the FAR Act,
27
that ceasing event is taken to have occurred at the banking
28
start time.
29
Note:
Events mentioned in section 32 of the FAR Act must be notified to the Regulator in
30
accordance with section 31 of the FAR Act (notification obligations of an accountable
31
Application, saving and transitional provisions
Schedule 2
Banking sector
Part 2
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
27
entity). Failure to comply with a notification obligation is a contravention of a civil
1
penalty provision (see section 80 of the FAR Act).
2
5 Persons disqualified under BEAR
3
When this item applies
4
(1)
This item applies in relation to a person if:
5
(a) before the banking start time, the person is disqualified from
6
being, or acting as, an accountable person under section 37J
7
of the old Banking Act; and
8
(b) the disqualification is in effect immediately before the
9
banking start time.
10
Persons are taken to be disqualified under FAR
11
(2)
The person is taken, from the banking start time, to be disqualified from
12
being or acting as an accountable person under section 42 of the FAR
13
Act.
14
(3)
For the purposes of subsection 42(2) of the FAR Act, the
15
disqualification applies in accordance with the following table.
16
17
Disqualified accountable persons
Item
Column 1
If, before the banking start
time, the person is disqualified
under the old Banking Act in
relation to ...
Column 2
then, from the banking start time,
the person is taken to be disqualified
under the FAR Act in relation to ...
1
a particular ADI
the accountable entity that is that ADI.
2
a particular subsidiary of an ADI
if the subsidiary is a significant related
entity of the accountable entity that is
the ADI--that significant related
entity.
3
a class of ADIs
a class of accountable entities that
includes those ADIs.
4
a class of subsidiaries of ADIs
a class of significant related entities of
accountable entities that includes those
subsidiaries of ADIs.
5
any ADI
any accountable entity.
Schedule 2
Application, saving and transitional provisions
Part 2
Banking sector
28
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Disqualified accountable persons
Item
Column 1
If, before the banking start
time, the person is disqualified
under the old Banking Act in
relation to ...
Column 2
then, from the banking start time,
the person is taken to be disqualified
under the FAR Act in relation to ...
6
any subsidiary of an ADI
any significant related entity of an
accountable entity.
(4)
The period of disqualification ends when the period of the
1
disqualification under the old Banking Act would have ended.
2
(5)
Paragraphs 42(1)(a) and (b) and subsections 42(3) to (7) of the FAR Act
3
do not apply in relation to the disqualification.
4
Applications to vary or revoke disqualification
5
(6)
If:
6
(a) before the banking start time, the person applies to APRA
7
under section 37JA of the old Banking Act to vary or revoke
8
the disqualification; and
9
(b) as at the banking start time, the application has not been
10
withdrawn by the applicant, or dealt with by APRA;
11
the application is taken, after the banking start time, to have been made
12
under section 43 of the FAR Act.
13
6 Pending applications to register a person under BEAR
14
When this item applies
15
(1)
This item applies if:
16
(a) before the banking start time, an application is made to
17
APRA under section 37HA of the old Banking Act to register
18
a person as an accountable person; and
19
(b) as at the banking start time, the application has not been
20
withdrawn by the applicant, or dealt with by APRA.
21
Application, saving and transitional provisions
Schedule 2
Banking sector
Part 2
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
29
Application taken to be made under FAR
1
(2)
The application is taken to be an application made under section 41 of
2
the FAR Act.
3
Note:
The Regulator may request further information under subsection 41(3) of the FAR Act.
4
(3)
For the purposes of paragraph 41(5)(a) of the FAR Act, the application
5
is taken to have been made at the banking start time.
6
7 Persons filling a temporary or unforeseen vacancy when
7
FAR starts
8
To avoid doubt, the period of 90 days referred to in paragraph 24(2)(a)
9
of the FAR Act begins no earlier than the banking start time, regardless
10
of when the person started to fill the temporary or unforeseen vacancy.
11
8 Applications to register under FAR
12
When this item applies
13
(1)
This item applies to a body corporate that is:
14
(a) an ADI; or
15
(b) an authorised NOHC of an ADI.
16
Early application for registration of accountable persons
17
(2)
From 30 days before the banking start time, the body corporate may
18
apply to the Regulator under section 41 of the FAR Act to register a
19
person as an accountable person in respect of the body or a significant
20
related entity of the body.
21
(3)
If the body corporate makes the application before the banking start
22
time, section 41 of the FAR Act (and any other provision of the FAR
23
Act that applies in relation to that section) applies in relation to the body
24
corporate as if the body corporate were an accountable entity.
25
Note:
Under paragraph 41(2)(d) of the FAR Act, if an accountable entity meets the enhanced
26
notification threshold under subsection 31(3) of the FAR Act, the application must
27
include an accountability statement for the person complying with section 33 of the
28
FAR Act.
29
Schedule 2
Application, saving and transitional provisions
Part 2
Banking sector
30
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
When registration comes into force
1
(4)
The registration of the person as an accountable person comes into force
2
at the later of the following times:
3
(a) the banking start time;
4
(b) when the Regulator registers the person.
5
9 Disqualification under FAR for non-compliance with BEAR
6
APRA may, after the banking start time, disqualify a person under
7
section 42 of the FAR Act from being, or acting as, an accountable
8
person if APRA is satisfied that:
9
(a) the person has failed to comply with one or more of their
10
obligations under section 37CA of the old Banking Act; and
11
(b) the disqualification is justified, having regard to the
12
seriousness of the failure to comply.
13
Note:
A decision to disqualify a person is a reviewable decision under Part 5
14
of Chapter 3 of the FAR Act.
15
Division 2
--Deferred remuneration obligations
16
10 Deferral of variable remuneration continues under BEAR
17
after FAR starts
18
When this item applies
19
(1)
This item applies in relation to a person if:
20
(a) immediately before the banking start time, the person is an
21
accountable person of an ADI, or of a subsidiary of an ADI,
22
under the old Banking Act; and
23
(b) at the banking start time, the person is an accountable person
24
of the ADI or subsidiary under section 10 of the FAR Act.
25
Old Banking Act continues to apply until FAR applies
26
(2)
Despite the repeal of Part IIAA of the
Banking Act 1959
by Part 2 of
27
Schedule 1, the old Banking Act applies, after the banking start time, in
28
relation to the variable remuneration of the accountable person unless
29
Part 5 of Chapter 2 of the FAR Act applies to the variable remuneration
30
(see item 11 of this Schedule).
31
Application, saving and transitional provisions
Schedule 2
Banking sector
Part 2
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
31
Note:
APRA may exercise powers etc. under repealed provisions for the purposes of this item:
1
see item 29.
2
11 Deferral of variable remuneration under FAR
3
When this item applies
4
(1)
This item applies in relation to a person who is an accountable person
5
under section 10 of the FAR Act of an entity (the
deferring entity
) that
6
is, at the banking start time:
7
(a) an accountable entity under subsection 9(1) of the FAR Act;
8
or
9
(b) a significant related entity of such an accountable entity.
10
FAR applies to financial years starting at least 6 months after
11
banking start time
12
(2)
Part 5 of Chapter 2 of the FAR Act applies in relation to the variable
13
remuneration of the accountable person only if the minimum deferral
14
period for the variable remuneration (see section 28 of the FAR Act)
15
starts in:
16
(a) the first financial year of the deferring entity that begins after
17
the end of the period of 6 months after the banking start time;
18
or
19
(b) a later financial year.
20
12 Deferral of variable remuneration under BEAR
--savings
21
provision
22
When this item applies
23
(1)
This item applies in relation to a person if:
24
(a) immediately before the banking start time:
25
(i) the person is an accountable person of an ADI, or of a
26
subsidiary of an ADI, under the old Banking Act; and
27
(ii) Division 4 of Part IIAA of the old Banking Act applies
28
in relation to the variable remuneration of the person;
29
and
30
(b) at the banking start time, the person is
not
an accountable
31
person of the ADI or the subsidiary under section 10 of the
32
FAR Act.
33
Schedule 2
Application, saving and transitional provisions
Part 2
Banking sector
32
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Note:
If the person was an accountable person of a subsidiary of the ADI, and the subsidiary is
1
not a significant related entity of the ADI under the FAR Act, then the person may not
2
be an accountable person of the ADI or the subsidiary under the FAR Act.
3
Old Banking Act continues to apply
4
(2)
Despite the repeal of Part IIAA of the
Banking Act 1959
by Part 2 of
5
Schedule 1, the old Banking Act continues to apply, after the banking
6
start time, in relation to the variable remuneration, as if that repeal had
7
not happened.
8
Division 3
--Notification obligations
9
13 Accountability statements under BEAR
10
When this item applies
11
(1)
This item applies if:
12
(a) before the banking start time, an ADI or a subsidiary of an
13
ADI gave APRA a document (the
old accountability
14
statement
) complying with section 37FA of the old Banking
15
Act for a person who was registered under section 37HA of
16
that Act; and
17
(b) at the banking start time, the person is an accountable person
18
of the ADI or of the subsidiary under section 10 of the FAR
19
Act.
20
Note:
For transfer of registration of the person, see item 4.
21
(2)
The old accountability statement (including any changes notified to
22
APRA before the banking start time) is taken, from the banking start
23
time, to have been given to the Regulator in accordance with section 33
24
of the FAR Act for the person.
25
Note:
Any material change to the information contained in the accountability statement must
26
be notified to the Regulator: see subsection 31(2) of the FAR Act.
27
14 Notification obligations under BEAR
--savings provision
28
(1)
Despite the repeal of Part IIAA of the
Banking Act 1959
by Part 2 of
29
Schedule 1, the old Banking Act continues to apply, after the banking
30
start time, in relation to an obligation covered by subitem (2) and
31
arising before that time, as if that repeal had not happened.
32
Application, saving and transitional provisions
Schedule 2
Banking sector
Part 2
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
33
(2)
For the purposes of subitem (1), the obligations are any of the
1
following:
2
(a) an obligation under paragraph 37F(1)(a) of the old Banking
3
Act to notify APRA of a change to an accountability
4
statement;
5
(b) an obligation under paragraph 37F(1)(b) of the old Banking
6
Act to notify APRA of a change to an accountability map;
7
(c) an obligation under paragraph 37F(1)(c) of the old Banking
8
Act to notify APRA of an event.
9
Division 4
--Regulatory powers and enforcement
10
15 Directions about reallocating responsibilities given under
11
BEAR
12
When this item applies
13
(1)
This item applies if:
14
(a) before the banking start time, APRA gives a body corporate a
15
direction under section 37DB of the old Banking Act in
16
relation to a responsibility; and
17
(b) as at the banking start time, APRA has not revoked the
18
direction.
19
Direction under FAR Act taken to be given
20
(2)
After the banking start time, the direction continues in force (and may
21
be dealt with) as if it had been given by the Regulator under section 65
22
of the FAR Act.
23
(3)
For the purposes of section 65 of the FAR Act:
24
(a) the requirements in paragraphs 65(3)(a) and (c) are taken to
25
be met; and
26
(b) if the direction under section 37DB of the old Banking Act
27
did not specify a period within which the direction is to be
28
complied with--paragraph 65(3)(b) does not apply to the
29
direction.
30
Schedule 2
Application, saving and transitional provisions
Part 2
Banking sector
34
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Secrecy obligations
1
(4)
If, immediately before the banking start time, the direction was covered
2
by a determination under subsection 11CH(2) of the old Banking Act,
3
then it is taken after the banking start time to be covered by a
4
determination under subsection 67(2) of the FAR Act.
5
(5)
If, immediately before the banking start time, the direction was covered
6
by a determination under subsection 11CK(2) or (5) of the old Banking
7
Act, then it is taken after the banking start time to be covered by:
8
(a) for a direction covered by a determination under
9
subsection 11CK(2) of the old Banking Act--a determination
10
under subsection 70(2) of the FAR Act;
11
(b) for a direction covered by a determination under
12
subsection 11CK(5) of the old Banking Act--a determination
13
under subsection 70(4) of the FAR Act.
14
16 Directions under FAR for non-compliance with BEAR
15
When this item applies
16
(1)
This item applies if:
17
(a) APRA has reason to believe that a body corporate has
18
contravened a provision of Part IIAA of the old Banking Act
19
before the banking start time; and
20
(b) as at the banking start time, APRA has not given a direction
21
under section 11CA of the old Banking Act in relation to the
22
contravention; and
23
(c) immediately after the banking start time, the body corporate
24
is an accountable entity.
25
APRA may give direction under FAR Act
26
(2)
Both of the following apply:
27
(a) APRA may give the body corporate a direction under
28
section 64 of the FAR Act;
29
(b) for the purposes of paragraph 64(3)(b) of the FAR Act, the
30
ground for giving the direction is the contravention of the old
31
Banking Act provision.
32
Application, saving and transitional provisions
Schedule 2
Banking sector
Part 2
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
35
17 Revocation of authority for non-compliance with FAR
1
The amendment of section 9A of the
Banking Act 1959
made by Part 1
2
of Schedule 1 applies in relation to a body corporate's authority under
3
section 9 of that Act whether the authority was granted before or after
4
the banking start time.
5
18 Contraventions under BEAR
--savings provision
6
(1)
Despite the repeal of Part IIAA of the
Banking Act 1959
by Part 2 of
7
Schedule 1, the old Banking Act continues to apply, after the banking
8
start time, in relation to a contravention (or an alleged contravention) of
9
a provision of the BEAR that occurs before that time, as if that repeal
10
had not been made.
11
(2)
This item does not limit any other item of this Schedule.
12
Note:
As a result, APRA may have a choice as to whether to deal with BEAR non-compliance
13
under the old Banking Act or whether to take action under the FAR Act in reliance on
14
item 9 or 16 of this Schedule.
15
19 Directions under BEAR for non-compliance with BEAR
--
16
savings provision
17
When this item applies
18
(1)
This item applies if:
19
(a) before the banking start time, APRA gives a body corporate a
20
direction under section 11CA of the old Banking Act in
21
relation to a contravention of the BEAR; and
22
(b) as at the banking start time, APRA has not revoked the
23
direction.
24
Old Banking Act continues to apply
25
(2)
Despite the repeals and amendments of the
Banking Act 1959
made by
26
Part 2 of Schedule 1, the old Banking Act continues to apply, after the
27
banking start time, in relation to the direction, as if those repeals and
28
amendments had not been made.
29
Schedule 2
Application, saving and transitional provisions
Part 2
Banking sector
36
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
20 Review of decisions under BEAR
--savings provision
1
Despite the repeal of Part IIAA of the
Banking Act 1959
by Part 2 of
2
Schedule 1, Part VI (review of decisions) of the old Banking Act
3
continues to apply, after the banking start time, in relation to a decision
4
made under Part IIAA of the
Banking Act 1959
:
5
(a) before the banking start time; or
6
(b) after the banking start time as a result of the operation of a
7
provision of this Schedule;
8
as if that repeal had not been made.
9
21 Enforceable undertakings and injunctions under BEAR
--
10
savings provision
11
To avoid doubt, the repeal of Part IIAA of the
Banking Act 1959
by
12
Part 2 of Schedule 1 does not affect:
13
(a) an enforceable undertaking given under section 18A of the
14
old Banking Act before the banking start time; or
15
(b) an injunction granted under section 65A of the old Banking
16
Act before the banking start time.
17
Application, saving and transitional provisions
Schedule 2
Other sectors
Part 3
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
37
Part 3--Other sectors
1
Division 1
--Key personnel obligations
2
22 Applications to register under FAR
3
When this item applies
4
(1)
This item applies to a body corporate that is any of the following:
5
(a) a general insurer;
6
(b) an authorised NOHC of a general insurer;
7
(c) a life company;
8
(d) a registered NOHC of a life company;
9
(e) a private health insurer;
10
(f) an RSE licensee.
11
Early application for registration of accountable persons
12
(2)
From 30 days before the FAR start time for the body corporate, the
13
body may apply to the Regulator under section 41 of the FAR Act to
14
register a person as an accountable person in respect of the body or a
15
significant related entity of the body.
16
(3)
If the body corporate makes the application before the FAR start time,
17
section 41 of the FAR Act (and any other provision of the FAR Act that
18
applies in relation to that section) applies in relation to the body
19
corporate as if the body corporate were an accountable entity.
20
Note:
Under paragraph 41(2)(d) of the FAR Act, if the accountable entity meets the enhanced
21
notification threshold under subsection 31(3) of the FAR Act, the application must
22
include an accountability statement for the person complying with section 33 of the
23
FAR Act.
24
When registration comes into force
25
(4)
The registration of the person as an accountable person comes into force
26
at the later of the following times:
27
(a) the FAR start time for the body corporate;
28
(b) when the Regulator registers the person.
29
Schedule 2
Application, saving and transitional provisions
Part 3
Other sectors
38
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Division 2
--Deferred remuneration obligations
1
23 Deferral of remuneration under FAR
2
When this item applies
3
(1)
This item applies in relation to a person who is an accountable person
4
under section 10 of the FAR Act of:
5
(a) an accountable entity under subsection 9(3) of the FAR Act;
6
or
7
(b) a significant related entity of such an accountable entity.
8
Deferred remuneration obligations apply when entity becomes an
9
accountable entity
10
(2)
Part 5 of Chapter 2 of the FAR Act applies in relation to the variable
11
remuneration of the accountable person only if the day referred to in
12
paragraph 28(2)(a) of the FAR Act in relation to the remuneration
13
occurs after the FAR start time for the accountable entity referred to in
14
paragraph (1)(a) or (b) of this item.
15
Division 3
--Insurance
16
24 Revocation of authorisation for non-compliance with FAR
17
The amendment of section 15 of the
Insurance Act 1973
made by Part 1
18
of Schedule 1 applies in relation to a body corporate's authorisation
19
under section 12 of that Act whether the authorisation was granted
20
before or after the FAR start time for the body corporate.
21
Division 4
--Life insurance
22
25 Application for registration as a life company
23
The amendment of section 21 of the
Life Insurance Act 1995
made by
24
Part 1 of Schedule 1 applies in relation to an application under
25
section 20 of the
Life Insurance Act 1995
for registration as a life
26
company if:
27
(a) the application was made before the commencement of this
28
Part and, as at that commencement, APRA has not decided
29
the application; or
30
(b) the application is made after that commencement.
31
Application, saving and transitional provisions
Schedule 2
Other sectors
Part 3
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
39
26 Revocation of registration for non-compliance with FAR
1
The amendment of section 26 of the
Life Insurance Act 1995
made by
2
Part 1 of Schedule 1 applies in relation to a body corporate's
3
registration under section 21 of that Act whether the registration was
4
made before or after the FAR start time for the body corporate.
5
Division 5
--Private health insurance
6
27 Cancellation of registration for non-compliance with FAR
7
The amendment of section 21 of the
Private Health Insurance
8
(Prudential Supervision) Act 2015
made by Part 1 of Schedule 1 applies
9
in relation to a body corporate's registration under section 15 of that
10
Act whether the registration was made before or after the FAR start
11
time for the body corporate.
12
Division 6
--Superannuation
13
28 Cancellation of RSE licence for non-compliance with FAR
14
The amendment of the definition of
RSE licensee law
in
15
subsection 10(1) of the
Superannuation Industry (Supervision) Act 1993
16
made by Part 1 of Schedule 1 applies in relation to a body corporate's
17
RSE licence under section 29D of that Act whether the RSE licence was
18
granted before or after the FAR start time for the body corporate.
19
Schedule 2
Application, saving and transitional provisions
Part 4
APRA and ASIC
40
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Part 4--APRA and ASIC
1
Division 1
--Transition from the BEAR
2
29 Doing things under repealed provisions
3
(1)
The amendments of the
Australian Prudential Regulation Authority Act
4
1998
and the
Banking Act 1959
made by Part 2 of Schedule 1 do not
5
apply for the purpose of APRA exercising any right or power,
6
performing any obligation or duty or doing any other thing (including
7
under a provision that is itself repealed or amended):
8
(a) in relation to variable remuneration to which the old Banking
9
Act applies under item 10 of this Schedule; or
10
(b) in relation to any other matter in relation to which an item of
11
this Schedule requires or permits APRA to do something
12
under the old Banking Act.
13
Secrecy
14
(2)
In addition to subitem (1), despite the amendments of section 56 of the
15
Australian Prudential Regulation Authority Act 1998
made by Part 2 of
16
Schedule 1, that Act as in force immediately before the banking start
17
time, continues to apply in relation to:
18
(a) information disclosed or obtained before or after the
19
commencement of that Part and relating to the affairs of a
20
person in relation to whom information is, or was, required to
21
be given under Part IIAA of the
Banking Act 1959
(including
22
that Part as it continues to apply under an item of this
23
Schedule); and
24
(b) a document given or produced before or after the
25
commencement of that Part and containing information
26
relating to the affairs of a person in relation to whom
27
information is, or was, required to be given under Part IIAA
28
of the
Banking Act 1959
(including that Part as it continues to
29
apply under an item of this Schedule)
.
30
Application, saving and transitional provisions
Schedule 2
APRA and ASIC
Part 4
No. , 2023
Financial Accountability Regime (Consequential Amendments) Bill
2023
41
30 Agreement about exercise of powers
1
Section 38 of the FAR Act does not apply in relation to APRA
2
performing a function, or exercising a power, that an item of this
3
Schedule requires or permits APRA to perform or exercise.
4
Division 2
--Application of the FAR
5
31 Secrecy
6
The amendments of sections 3 and 56 of the
Australian Prudential
7
Regulation Authority Act 1998
made by Part 1 of Schedule 1 apply in
8
relation to:
9
(a) any disclosure of information after the commencement of
10
that Part, whether the information was disclosed or obtained
11
under, or for the purposes of, a prudential regulation
12
framework law before or after that commencement; and
13
(b) any production of a document after the commencement of
14
that Part, whether the document was given or produced
15
under, or for the purposes of, a prudential regulation
16
framework law before or after that commencement.
17
32 Information to be included in APRA's annual report
18
The amendment of section 59 of the
Australian Prudential Regulation
19
Authority Act 1998
made by Part 1 of Schedule 1 applies to reports on
20
APRA's investigations during the financial year ending on 30 June
21
2024, and later financial years.
22
33 Sharing information and documents between APRA and
23
ASIC
24
(1)
Section 39 of the FAR Act is taken to apply in relation to information
25
disclosed to or obtained by APRA or ASIC, or a document that is given
26
or produced to APRA or ASIC, under or for the purposes of:
27
(a) the BEAR; or
28
(b) this Schedule.
29
(2)
Section 39 of the FAR Act (including as it applies because of
30
subitem (1) of this item) applies in relation to information disclosed or
31
obtained, or a document that is given or produced, whether before or
32
after the FAR Act commences.
33
Schedule 2
Application, saving and transitional provisions
Part 5
Transitional rules
42
Financial Accountability Regime (Consequential Amendments) Bill
2023
No. , 2023
Part 5--Transitional rules
1
34 Transitional rules
2
(1)
ASIC and APRA may jointly, by legislative instrument, make rules
3
prescribing matters of a transitional nature (including prescribing any
4
saving or application provisions) relating to:
5
(a) the amendments or repeals made by this Act; or
6
(b) the enactment of this Act or the FAR Act.
7
(2)
To avoid doubt, the rules may not do the following:
8
(a) create an offence or civil penalty;
9
(b) provide powers of:
10
(i) arrest or detention; or
11
(ii) entry, search or seizure;
12
(c) impose a tax;
13
(d) set an amount to be appropriated from the Consolidated
14
Revenue Fund under an appropriation in this Act;
15
(e) directly amend the text of this Act or the FAR Act.
16
(3)
This Act (other than subitem (2) of this item) does not limit the rules
17
that may be made.
18