FINANCIAL SECTOR REFORM (HAYNE ROYAL COMMISSION RESPONSE-STRONGER REGULATORS (2019 MEASURES)) BILL 2019

2019

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Financial Sector Reform (Hayne Royal

Commission Response--Stronger

Regulators (2019 Measures)) Bill 2019

No. , 2019

(Treasury)

A Bill for an Act to amend the law in relation to

ASIC, and financial sector regulation, and for

related purposes

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

Contents

Short title ........................................................................................... 1

Commencement ................................................................................. 1

Schedules ........................................................................................... 2

Schedule 1--ASIC search warrant provisions

Part 1--Main amendments to ASIC Act

Australian Securities and Investments Commission Act 2001

Part 2--Main amendments to NCCP Act

National Consumer Credit Protection Act 2009

Part 3--Consequential amendments

Australian Securities and Investments Commission Act 2001

National Consumer Credit Protection Act 2009

Retirement Savings Accounts Act 1997

Superannuation Industry (Supervision) Act 1993

Part 4--Application provisions

Australian Securities and Investments Commission Act 2001

National Consumer Credit Protection (Transitional and

Consequential Provisions) Act 2009

Schedule 2--Access to telecommunications interception

information

Telecommunications (Interception and Access) Act 1979

Schedule 3--Licensing and false or misleading documents

Part 1--Australian financial services licences

Corporations Act 2001

Part 2--Australian credit licences

National Consumer Credit Protection Act 2009

National Consumer Credit Protection (Transitional and

Consequential Provisions) Act 2009

Part 3--False or misleading documents

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

Corporations Act 2001

National Consumer Credit Protection Act 2009

Schedule 4--Banning orders

Part 1--Corporations amendments

Corporations Act 2001

Part 2--Consumer credit amendments

National Consumer Credit Protection Act 2009

National Consumer Credit Protection (Transitional and

Consequential Provisions) Act 2009

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

A Bill for an Act to amend the law in relation to

ASIC, and financial sector regulation, and for

related purposes

The Parliament of Australia enacts:

1 Short title

This Act is the

Financial Sector Reform (Hayne Royal Commission

Response--Stronger Regulators (2019 Measures)) Act 2019

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of

this Act

The day after this Act receives the Royal

Assent.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Schedules

Legislation that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

ASIC search warrant provisions

Schedule 1

Main amendments to ASIC Act

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

Schedule 1--ASIC search warrant provisions

Part 1--Main amendments to ASIC Act

Australian Securities and Investments Commission Act 2001

1 After Division 3 of Part 3

Insert:

Division 3A--Extra application of Crimes Act search

warrant provisions

Subdivision A--Basic extra application

39D Extra application of Crimes Act search warrant provisions

(1) In addition to the application that the applied provisions have

(disregarding this subsection) in relation to offences mentioned in

subsection (3), the applied provisions also apply under this

subsection in relation to those offences, with the modifications set

out in Subdivision B.

(2) To avoid doubt, subsection (1) does not limit the application that

the applied provisions have (disregarding that subsection).

(3) For the purposes of subsection (1), the offences are indictable

offences under any of the following:

(a) the corporations legislation;

(b) a provision of a law of the Commonwealth, or of a State or

Territory in this jurisdiction, a contravention of which:

(i) concerns the management or affairs of a body corporate

or managed investment scheme; or

(ii) involves fraud or dishonesty and relates to a body

corporate or managed investment scheme or to financial

products;

Retirement Savings Accounts Act 1997

;

(d) the

Superannuation Industry (Supervision) Act 1993

Schedule 1

ASIC search warrant provisions

Part 1

Main amendments to ASIC Act

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(4) For the purposes of this Division, the

applied provisions

are as

follows:

(a) Divisions 1, 2, 4C and 5 of Part IAA of the

Crimes Act 1914

;

(b) any other provisions of that Act, to the extent that those other

provisions relate to the operation of the provisions mentioned

in paragraph (a).

39E Interpretation of modifications

To avoid doubt, a term used in Subdivision B in a modification of

an applied provision has the same meaning as in the

Crimes Act

1914

unless specified otherwise.

Subdivision B--Modifications

39F Major modifications--evidential material

For the purposes of subsection 39D(1), in the definition of

evidential material

in subsection 3C(1) of the

Crimes Act 1914

omit the words "or a thing relevant to a summary offence".

39G Major modifications--who may apply for a warrant etc.

(1) For the purposes of subsection 39D(1), in subsection 3E(1) of the

Crimes Act 1914

, after the words "by information on oath or

affirmation", insert "given by a constable, or by a member of ASIC

or an ASIC staff member authorised in writing by ASIC for the

purposes of this subsection".

(2) For the purposes of subsection 39D(1), in subsection 3E(2) of the

Crimes Act 1914

, after the words "by information on oath or

affirmation", insert "given by a constable, or by a member of ASIC

or an ASIC staff member authorised in writing by ASIC for the

purposes of this subsection".

(3) For the purposes of subsection 39D(1), in subsection 3LA(1) of the

Crimes Act 1914

, after the words "A constable", insert ", or a

member of ASIC or an ASIC staff member authorised in writing

by ASIC for the purposes of this subsection,".

ASIC search warrant provisions

Schedule 1

Main amendments to ASIC Act

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(4) For the purposes of subsection 39D(1), in subsection 3R(1) of the

Crimes Act 1914

, after the words "A constable", insert ", or a

member of ASIC or an ASIC staff member authorised in writing

by ASIC for the purposes of this subsection,".

39H Major modifications--purposes for which things may be used

and shared

For the purposes of subsection 39D(1), replace section 3ZQU of

the

Crimes Act 1914

with the following 2 sections.

3ZQU Purposes for which things may be used and shared

(1) A constable or Commonwealth officer may use, or make available

to a member of ASIC or an ASIC staff member to use, a thing

seized under this Part for the purpose of the performance of

ASIC's functions or duties or the exercise of its powers.

(2) Without limiting the scope of subsection (1), a constable or

Commonwealth officer may use, or make available to a person

covered under subsection (3) to use, a thing seized under this Part

for the purpose of any or all of the following if it is necessary to do

so for that purpose:

(a) preventing or investigating any of the following:

(i) a breach of an offence provision;

(ii) a breach of a civil penalty provision;

(iii) a breach of an obligation (whether under statute or

otherwise), other than an obligation of a private nature

(such as an obligation under a contract, deed, trust or

similar arrangement);

(b) prosecuting a breach of an offence provision;

(d) taking administrative action, or seeking an order of a court or

tribunal (within the meaning of the

Australian Securities and

Investments Commission Act 2001

), in response to a breach

of an obligation (whether under statute or otherwise), other

than an obligation of a private nature (such as an obligation

under a contract, deed, trust or similar arrangement).

Schedule 1

ASIC search warrant provisions

Part 1

Main amendments to ASIC Act

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(3) A person is covered under this subsection if the person is any of

the following:

(a) a constable;

(b) a Commonwealth officer.

(4) Without limiting the scope of subsections (1) and (2), a constable

or Commonwealth officer may use, or make available to a person

covered under subsection (3) to use, a thing seized under this Part

for the purpose of any or all of the following if it is necessary to do

so for that purpose:

(a) proceedings under the

Proceeds of Crime Act 1987

or the

Proceeds of Crime Act 2002

;

(b) proceedings under a corresponding law (within the meaning

of either of the Acts mentioned in paragraph (a)) that relate to

a State offence that has a federal aspect;

Commonwealth, a State or a Territory;

(d) the performance of a function or duty, or the exercise of a

power, by a person, court or other body under, or in relation

to a matter arising under, Division 104, 105 or 105A of the

Criminal Code

;

(e) investigating or resolving a complaint or an allegation of

misconduct relating to an exercise of a power or the

performance of a function or duty under this Part;

(f) investigating or resolving an AFP conduct or practices issue

(within the meaning of the

Australian Federal Police Act

1979

) under Part V of that Act;

(g) investigating or resolving a complaint under the

Ombudsman

Act 1976

or the

Privacy Act 1988

;

(h) investigating or inquiring into a corruption issue under the

Law Enforcement Integrity Commissioner Act 2006

;

(i) proceedings in relation to a complaint, allegation or issue

mentioned in paragraph (e), (f), (g) or (h);

(j) deciding whether to institute proceedings, to make an

application or request, or to take any other action, mentioned

in:

(i) any of the preceding paragraphs of this subsection; or

(ii) subsection (1) or (2);

ASIC search warrant provisions

Schedule 1

Main amendments to ASIC Act

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(k) the performance of the functions of the Australian Federal

Police under section 8 of the

Australian Federal Police Act

1979

(5) A constable or Commonwealth officer may use a thing seized

under this Part for any other use that is required or authorised by or

under a law of a State or a Territory.

(6) A constable or Commonwealth officer may make available to

another constable or Commonwealth officer to use a thing seized

under this Part for any purpose for which the making available of

the thing is required or authorised by a law of a State or Territory.

(7) To avoid doubt, this section does not limit any other law of the

Commonwealth that:

(a) requires or authorises the use of a document or other thing; or

(b) requires or authorises the making available (however

described) of a document or other thing.

(8) A constable or Commonwealth officer may make available to an

agency that has responsibility for:

(a) law enforcement in a foreign country; or

(b) intelligence gathering for a foreign country; or

a thing seized under this Part to be used by that agency for:

(d) a purpose mentioned in subsection (1), (2), (4), (5) or (6); or

(e) the purpose of performing a function, or exercising a power,

conferred by a law in force in that foreign country.

Ministerial arrangements for sharing

(9) This Division does not prevent the Minister from making an

arrangement with a Minister of a State or Territory for:

(a) the making available to a State or Territory law enforcement

agency of that State or Territory, for purposes mentioned in

subsections (1), (2), (4), (6) and (8), of things seized under

this Part; and

(b) the disposal by the agency of such things, originals and

copies when they are no longer of use to that agency for

those purposes.

Schedule 1

ASIC search warrant provisions

Part 1

Main amendments to ASIC Act

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

Note:

This subsection does not empower the Minister to make such an

arrangement.

Definition

(10) In this section:

State or Territory law enforcement agency

means:

(a) the police force or police service of a State or Territory; or

(b) the New South Wales Crime Commission; or

South Wales; or

(d) the Law Enforcement Conduct Commission of New South

Wales; or

(e) the Independent Broad-based Anti-corruption Commission of

Victoria; or

(f) the Crime and Corruption Commission of Queensland; or

(g) the Corruption and Crime Commission of Western Australia;

(h) the Independent Commissioner Against Corruption of South

Australia.

3ZQUA Commonwealth law permitting access to things seized

under this Part does not apply

(1) This section applies if, disregarding this section, a law of the

Commonwealth (other than this Part) requires or permits any of the

following to be made available to a person covered under

subsection (3):

(a) a thing seized under this Part;

(b) if a thing contains data that ASIC or the Australian Federal

Police came into possession of as a result of exercising

powers under this Part--the thing.

(2) Subject to subsection (4), that law does not require or permit the

thing to be made available to the person.

(3) A person is covered under this subsection if the person is not, and

is not representing, the Commonwealth, a State or a Territory.

(4) This section does not affect any of the following:

ASIC search warrant provisions

Schedule 1

Main amendments to ASIC Act

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(a) the power of a court, or of a tribunal (within the meaning of

the

Australian Securities and Investments Commission Act

2001

), to make an order;

(b) the effect of an order of a court, or of a tribunal (within the

meaning of that Act).

(5) This section does not affect the operation of the

Freedom of

Information Act 1982

39I Minor modifications

(1) For the purposes of subsection 39D(1), the applied provisions

apply with the modifications set out in this section.

(2) To avoid doubt, those modifications have no effect other than for

the purposes mentioned in subsection (1).

(3) In subsection 3C(1) of the

Crimes Act 1914

, insert the following

definitions:

ASIC

means the Australian Securities and Investments

Commission.

ASIC senior staff member

means a senior staff member (within

the meaning of the

Australian Securities and Investments

Commission Act 2001

ASIC staff member

means a staff member (within the meaning of

the

Australian Securities and Investments Commission Act 2001

responsible agency

, in relation to data or a thing, means:

(a) if the data, or a device containing the data, or the thing, is in

the control of the Australian Federal Police--the Australian

Federal Police; or

(b) if the data, or a device containing the data, or the thing, is in

the control of ASIC--ASIC.

responsible Commissioner

, in relation to data or a thing, means:

(a) if the data, or a device containing the data, or the thing, is in

the control of the Australian Federal Police--the

Commissioner of the Australian Federal Police; or

Schedule 1

ASIC search warrant provisions

Part 1

Main amendments to ASIC Act

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(b) if the data, or a device containing the data, or the thing, is in

the control of ASIC--the Chairperson of ASIC.

(4) In section 3E of the

Crimes Act 1914

(a) omit the note to subsection (1) of that section; and

(b) omit the words "is a member or special member of the

Australian Federal Police and" in subsection (4) of that

section.

(5) In subsections 3L(1B) and 3LAA(3) and sections 3ZQX and

3ZQZB of the

Crimes Act 1914

(a) treat the references to the Commissioner as being references

to the responsible Commissioner; and

(b) treat the references to the Australian Federal Police as being

references to the responsible agency.

ASIC search warrant provisions

Schedule 1

Main amendments to NCCP Act

Part 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

Part 2--Main amendments to NCCP Act

National Consumer Credit Protection Act 2009

2 After Part 6-3

Insert:

Part 6-3A--Search warrants

Division 1--Introduction

272A Guide to this Part

This Part allows the grant of search warrants in respect of

indictable offences under the credit legislation, etc.

Division 2--Extra application of Crimes Act search

warrant provisions

Subdivision A--Basic extra application

272B Extra application of Crimes Act search warrant provisions

(1) In addition to the application that the applied provisions have

(disregarding this subsection) in relation to offences mentioned in

subsection (3), the applied provisions also apply under this

subsection in relation to those offences, with the modifications set

out in Subdivision B.

(2) To avoid doubt, subsection (1) does not limit the application that

the applied provisions have (disregarding that subsection).

(3) For the purposes of subsection (1), the offences are indictable

offences under any of the following:

(a) the credit legislation;

Schedule 1

ASIC search warrant provisions

Part 2

Main amendments to NCCP Act

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(b) a provision of a law of the Commonwealth, or of a law of a

referring State or a Territory, a contravention of which:

(i) concerns the management, conduct or affairs of a

licensee, credit representative or other person who

engages, or has engaged, in a credit activity; or

(ii) involves fraud or dishonesty and relates to a credit

activity engaged in by a person, or a credit contract,

mortgage, guarantee or consumer lease.

(4) For the purposes of this Division, the

applied provisions

are as

follows:

(a) Divisions 1, 2, 4C and 5 of Part IAA of the

Crimes Act 1914

;

(b) any other provisions of that Act, to the extent that those other

provisions relate to the operation of the provisions mentioned

in paragraph (a).

272C Interpretation of modifications

To avoid doubt, a term used in Subdivision B in a modification of

an applied provision has the same meaning as in the

Crimes Act

1914

unless specified otherwise.

Subdivision B--Modifications

272D Major modifications--evidential material

For the purposes of subsection 272B(1), in the definition of

evidential material

in subsection 3C(1) of the

Crimes Act 1914

omit the words "or a thing relevant to a summary offence".

272E Major modifications--who may apply for a warrant etc.

(1) For the purposes of subsection 272B(1), in subsection 3E(1) of the

Crimes Act 1914

, after the words "by information on oath or

affirmation", insert "given by a constable, or by a member of ASIC

or an ASIC staff member authorised in writing by ASIC for the

purposes of this subsection".

(2) For the purposes of subsection 272B(1), in subsection 3E(2) of the

Crimes Act 1914

, after the words "by information on oath or

affirmation", insert "given by a constable, or by a member of ASIC

ASIC search warrant provisions

Schedule 1

Main amendments to NCCP Act

Part 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

or an ASIC staff member authorised in writing by ASIC for the

purposes of this subsection".

(3) For the purposes of subsection 272B(1), in subsection 3LA(1) of

the

Crimes Act 1914

, after the words "A constable", insert ", or a

member of ASIC or an ASIC staff member authorised in writing

by ASIC for the purposes of this subsection,".

(4) For the purposes of subsection 272B(1), in subsection 3R(1) of the

Crimes Act 1914

, after the words "A constable", insert ", or a

member of ASIC or an ASIC staff member authorised in writing

by ASIC for the purposes of this subsection,".

272F Major modifications--purposes for which things may be used

and shared

For the purposes of subsection 272B(1), replace section 3ZQU of

the

Crimes Act 1914

with the following 2 sections.

3ZQU Purposes for which things may be used and shared

(1) A constable or Commonwealth officer may use, or make available

to a member of ASIC or an ASIC staff member to use, a thing

seized under this Part for the purpose of the performance of

ASIC's functions or duties or the exercise of its powers.

(2) Without limiting the scope of subsection (1), a constable or

Commonwealth officer may use, or make available to a person

covered under subsection (3) to use, a thing seized under this Part

for the purpose of any or all of the following if it is necessary to do

so for that purpose:

(a) preventing or investigating any of the following:

(i) a breach of an offence provision;

(ii) a breach of a civil penalty provision;

(iii) a breach of an obligation (whether under statute or

otherwise), other than an obligation of a private nature

(such as an obligation under a contract, deed, trust or

similar arrangement);

(b) prosecuting a breach of an offence provision;

Schedule 1

ASIC search warrant provisions

Part 2

Main amendments to NCCP Act

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(d) taking administrative action, or seeking an order of a court or

tribunal (within the meaning of the

Australian Securities and

Investments Commission Act 2001

), in response to a breach

of an obligation (whether under statute or otherwise), other

than an obligation of a private nature (such as an obligation

under a contract, deed, trust or similar arrangement).

(3) A person is covered under this subsection if the person is any of

the following:

(a) a constable;

(b) a Commonwealth officer.

(4) Without limiting the scope of subsections (1) and (2), a constable

or Commonwealth officer may use, or make available to a person

covered under subsection (3) to use, a thing seized under this Part

for the purpose of any or all of the following if it is necessary to do

so for that purpose:

(a) proceedings under the

Proceeds of Crime Act 1987

or the

Proceeds of Crime Act 2002

;

(b) proceedings under a corresponding law (within the meaning

of either of the Acts mentioned in paragraph (a)) that relate to

a State offence that has a federal aspect;

Commonwealth, a State or a Territory;

(d) the performance of a function or duty, or the exercise of a

power, by a person, court or other body under, or in relation

to a matter arising under, Division 104, 105 or 105A of the

Criminal Code

;

(e) investigating or resolving a complaint or an allegation of

misconduct relating to an exercise of a power or the

performance of a function or duty under this Part;

(f) investigating or resolving an AFP conduct or practices issue

(within the meaning of the

Australian Federal Police Act

1979

) under Part V of that Act;

(g) investigating or resolving a complaint under the

Ombudsman

Act 1976

or the

Privacy Act 1988

;

(h) investigating or inquiring into a corruption issue under the

Law Enforcement Integrity Commissioner Act 2006

;

ASIC search warrant provisions

Schedule 1

Main amendments to NCCP Act

Part 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(i) proceedings in relation to a complaint, allegation or issue

mentioned in paragraph (e), (f), (g) or (h);

(j) deciding whether to institute proceedings, to make an

application or request, or to take any other action, mentioned

in:

(i) any of the preceding paragraphs of this subsection; or

(ii) subsection (1) or (2);

(k) the performance of the functions of the Australian Federal

Police under section 8 of the

Australian Federal Police Act

1979

(5) A constable or Commonwealth officer may use a thing seized

under this Part for any other use that is required or authorised by or

under a law of a State or a Territory.

(6) A constable or Commonwealth officer may make available to

another constable or Commonwealth officer to use a thing seized

under this Part for any purpose for which the making available of

the thing is required or authorised by a law of a State or Territory.

(7) To avoid doubt, this section does not limit any other law of the

Commonwealth that:

(a) requires or authorises the use of a document or other thing; or

(b) requires or authorises the making available (however

described) of a document or other thing.

(8) A constable or Commonwealth officer may make available to an

agency that has responsibility for:

(a) law enforcement in a foreign country; or

(b) intelligence gathering for a foreign country; or

a thing seized under this Part to be used by that agency for:

(d) a purpose mentioned in subsection (1), (2), (4), (5) or (6); or

(e) the purpose of performing a function, or exercising a power,

conferred by a law in force in that foreign country.

Ministerial arrangements for sharing

(9) This Division does not prevent the Minister from making an

arrangement with a Minister of a State or Territory for:

Schedule 1

ASIC search warrant provisions

Part 2

Main amendments to NCCP Act

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(a) the making available to a State or Territory law enforcement

agency of that State or Territory, for purposes mentioned in

subsections (1), (2), (4), (6) and (8), of things seized under

this Part; and

(b) the disposal by the agency of such things, originals and

copies when they are no longer of use to that agency for

those purposes.

Note:

This subsection does not empower the Minister to make such an

arrangement.

Definition

(10) In this section:

State or Territory law enforcement agency

means:

(a) the police force or police service of a State or Territory; or

(b) the New South Wales Crime Commission; or

South Wales; or

(d) the Law Enforcement Conduct Commission of New South

Wales; or

(e) the Independent Broad-based Anti-corruption Commission of

Victoria; or

(f) the Crime and Corruption Commission of Queensland; or

(g) the Corruption and Crime Commission of Western Australia;

(h) the Independent Commissioner Against Corruption of South

Australia.

3ZQUA Commonwealth law permitting access to things seized

under this Part does not apply

(1) This section applies if, disregarding this section, a law of the

Commonwealth (other than this Part) requires or permits any of the

following to be made available to a person covered under

subsection (3):

(a) a thing seized under this Part;

ASIC search warrant provisions

Schedule 1

Main amendments to NCCP Act

Part 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(b) if a thing contains data that ASIC or the Australian Federal

Police came into possession of as a result of exercising

powers under this Part--the thing.

(2) Subject to subsection (4), that law does not require or permit the

thing to be made available to the person.

(3) A person is covered under this subsection if the person is not, and

is not representing, the Commonwealth, a State or a Territory.

(4) This section does not affect any of the following:

(a) the power of a court, or of a tribunal (within the meaning of

the

Australian Securities and Investments Commission Act

2001

), to make an order;

(b) the effect of an order of a court, or of a tribunal (within the

meaning of that Act).

(5) This section does not affect the operation of the

Freedom of

Information Act 1982

272G Minor modifications

(1) For the purposes of subsection 272B(1), the applied provisions

apply with the modifications set out in this section.

(2) To avoid doubt, those modifications have no effect other than for

the purposes mentioned in subsection (1).

(3) In subsection 3C(1) of the

Crimes Act 1914

, insert the following

definitions:

ASIC

means the Australian Securities and Investments

Commission.

ASIC senior staff member

means a senior staff member (within

the meaning of the

Australian Securities and Investments

Commission Act 2001

ASIC staff member

means a staff member (within the meaning of

the

Australian Securities and Investments Commission Act 2001

responsible agency

, in relation to data or a thing, means:

Schedule 1

ASIC search warrant provisions

Part 2

Main amendments to NCCP Act

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(a) if the data, or a device containing the data, or the thing, is in

the control of the Australian Federal Police--the Australian

Federal Police; or

(b) if the data, or a device containing the data, or the thing, is in

the control of ASIC--ASIC.

responsible Commissioner

, in relation to data or a thing, means:

(a) if the data, or a device containing the data, or the thing, is in

the control of the Australian Federal Police--the

Commissioner of the Australian Federal Police; or

(b) if the data, or a device containing the data, or the thing, is in

the control of ASIC--the Chairperson of ASIC.

(4) In section 3E of the

Crimes Act 1914

(a) omit the note to subsection (1) of that section; and

(b) omit the words "is a member or special member of the

Australian Federal Police and" in subsection (4) of that

section.

(5) In subsections 3L(1B) and 3LAA(3) and sections 3ZQX and

3ZQZB of the

Crimes Act 1914

(a) treat the references to the Commissioner as being references

to the responsible Commissioner; and

(b) treat the references to the Australian Federal Police as being

references to the responsible agency.

ASIC search warrant provisions

Schedule 1

Consequential amendments

Part 3

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

Part 3--Consequential amendments

Australian Securities and Investments Commission Act 2001

3 Section 28

Omit ", 35, 36".

4 Sections 35 to 36A

Repeal the sections.

5 Paragraph 37(1)(b)

Omit "section 36", substitute "Division 2 of Part IAA of the

Crimes Act

1914

, as applied under section 39D of this Act".

6 After subsection 37(1)

Insert:

(1A) However, if paragraph (1)(b) applies, subsections (4), (5), (6), (7)

and (8) do not apply.

7 Subsection 37(8)

Omit "Unless subparagraph (1)(b)(ii) applies, the person", substitute

"The person".

8 Subsection 37(9)

Omit "or a person", substitute "or if paragraph (1)(a) applies a person".

9 Paragraph 39B(1)(b)

Omit "section 36", substitute "Division 2 of Part IAA of the

Crimes Act

1914

, as applied under section 39D of this Act".

10 Paragraph 39B(1)(d)

Omit "section 36", substitute "Division 2 of Part IAA of the

Crimes Act

1914

, as applied under section 39D of this Act".

11 Subsection 65(1)

Repeal the subsection, substitute:

Schedule 1

ASIC search warrant provisions

Part 3

Consequential amendments

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(1) A person must not engage in conduct that results in the obstruction

or hindering of a person in the exercise of the power under this

Part.

Penalty: 2 years imprisonment.

12 Subsection 65(2)

Repeal the subsection.

National Consumer Credit Protection Act 2009

13 Section 262

Omit:

Division 2 also allows ASIC to seize books in certain

circumstances, and sets out procedures to be followed in relation to

such a seizure, including in relation to the granting of warrants.

14 Section 263

Omit "265, 269 and 270", substitute "and 265".

15 Sections 269 and 270

Repeal the sections.

16 Paragraph 271(1)(b)

Omit "section 270", substitute "Division 2 of Part IAA of the

Crimes

Act 1914

, as applied under section 272B of this Act".

17 After subsection 271(1)

Insert:

(1A) However, if paragraph (1)(b) applies, subsections (4), (5), (6), (7)

and (8) do not apply.

18 Subsection 271(8)

Omit "Unless subparagraph (1)(b)(ii) applies, the person", substitute

"The person".

ASIC search warrant provisions

Schedule 1

Consequential amendments

Part 3

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

19 Subsection 271(9)

Omit "or a person", substitute "or if paragraph (1)(a) applies a person".

20 Section 292

Repeal the section.

Retirement Savings Accounts Act 1997

21 At the end of section 102

Add:

(3) The reference in subsection (1) to an inspector does not include:

(a) an inspector that is appointed by ASIC; or

(b) ASIC, where ASIC is exercising the powers of an inspector

under section 98.

22 Paragraph 104(1)(b)

After "section 103,", insert "or Division 2 of Part IAA of the

Crimes

Act 1914

, as applied under section 39D of the

Australian Securities and

Investments Commission Act 2001

,".

23 After subsection 104(1)

Insert:

(1A) However, if paragraph (1)(b) applies because of the operation of

section 39D of the

Australian Securities and Investments

Commission Act 2001

, subsections (4), (5), (6), (7) and (8) do not

apply.

Superannuation Industry (Supervision) Act 1993

24 At the end of section 271

Add:

(3) The reference in subsection (1) to an inspector does not include:

(a) an inspector that is appointed by ASIC; or

(b) ASIC, where ASIC is exercising the powers of an inspector

under section 267.

Schedule 1

ASIC search warrant provisions

Part 3

Consequential amendments

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

25 Paragraph 273(1)(b)

After "section 272,", insert "or Division 2 of Part IAA of the

Crimes

Act 1914

, as applied under section 39D of the

Australian Securities and

Investments Commission Act 2001

,".

26 After subsection 273(1)

Insert:

(1A) However, if paragraph (1)(b) applies because of the operation of

section 39D of the

Australian Securities and Investments

Commission Act 2001

, subsections (4), (5), (6), (7) and (8) do not

apply.

ASIC search warrant provisions

Schedule 1

Application provisions

Part 4

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

Part 4--Application provisions

27 Application

--SIS Act and RSA Act

The amendments made by Part 3 of this Schedule to the

Retirement

Savings Accounts Act 1997

and the

Superannuation Industry

(Supervision) Act 1993

apply to warrants applied for on or after the

commencement of that Part (whether or not a matter to which the

warrant relates arose before, on, or after that commencement).

Australian Securities and Investments Commission Act 2001

28 In the appropriate position

Insert:

Part 28--Transitional provisions relating to the

Financial Sector Reform (Hayne Royal

Commission Response--Stronger

Regulators (2019 Measures)) Act 2019

324 Application of amendments--search warrant provisions

The amendments of this Act made by Parts 1 and 3 of Schedule 1

to the

Financial Sector Reform (Hayne Royal Commission

Response--Stronger Regulators (2019 Measures)) Act 2019

apply

to warrants applied for on or after the commencement of those

Parts (whether or not a matter to which the warrant relates arose

before, on, or after that commencement).

National Consumer Credit Protection (Transitional and

Consequential Provisions) Act 2009

29 In the appropriate position

Insert:

Schedule 1

ASIC search warrant provisions

Part 4

Application provisions

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

Schedule 12--Application provisions for

Schedule 1 to the Financial Sector

Reform (Hayne Royal Commission

Response--Stronger Regulators (2019

Measures)) Act 2019

1 Definitions

In this Schedule:

amending Act

means the

Financial Sector Reform (Hayne Royal

Commission Response--Stronger Regulators (2019 Measures))

Act

2019

2 Application

--search warrant provisions

The amendments of the National Credit Act made by Parts 2 and 3 of

Schedule 1 to the amending Act apply to warrants applied for on or

after the commencement of those Parts (whether or not a matter to

which the warrant relates arose before, on, or after that

commencement).

Access to telecommunications interception information

Schedule 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

Schedule 2--Access to telecommunications

interception information

Telecommunications (Interception and Access) Act 1979

1 Subsection 5(1)

Insert:

ASIC

means the Australian Securities and Investments

Commission.

2 Subsection 5(1) (definition of

permitted purpose

)

Omit "or an eligible authority of a State,", substitute ", an eligible

authority of a State or ASIC,".

3 Subsection 5(1) (paragraph (a) of the definition of

permitted

purpose

)

After "Immigration and Border Protection Department", insert "or

ASIC".

4 Subsection 5(1) (at the end of the definition of

permitted

purpose

)

Add:

; or (j) in the case of ASIC:

(i) an investigation by ASIC of a serious offence or of the

likely commission of a serious offence; or

(ii) a report on such an investigation; or

(iii) the making of a decision whether or not to begin a

prosecution for a serious offence if the prosecution

arises from or relates to such an investigation; or

(iv) a prosecution for a serious offence if the prosecution

arises from or relates to such an investigation.

5 Subsection 5(1)

Insert:

Schedule 2

Access to telecommunications interception information

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

staff member of ASIC

has the same meaning as

staff member

the

Australian Securities and Investments Commission Act 2001

6 Paragraph 5D(5C)(g)

Omit "subsection 1041G(1)", substitute "section 1041G".

7 Section 67 (heading)

Repeal the heading, substitute:

67 Dealing for permitted purposes

8 Before subsection 67(1)

Insert:

Dealing for permitted purposes in relation to an agency

9 Before subsection 67(2)

Insert:

Dealing for permitted purposes in relation to an eligible

Commonwealth authority

10 At the end of section 67

Add:

Dealing for permitted purposes in relation to ASIC

(3) A member of ASIC or a staff member of ASIC may, for a

permitted purpose, or permitted purposes, in relation to ASIC, and

for no other purpose, communicate to another person, make use of,

or make a record of the following:

(a) lawfully intercepted information other than foreign

intelligence information;

(b) interception warrant information.

11 At the end of section 68

Add:

Access to telecommunications interception information

Schedule 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

; and (p) to a member of ASIC or a staff member of ASIC, if the

information relates, or appears to relate, to a matter that may

give rise to an investigation by ASIC of:

(i) a serious offence; or

(ii) the likely commission of a serious offence.

12 Application of amendments

The amendments made by this Schedule (other than item 6) apply in

relation to lawfully intercepted information, or interception warrant

information, that was originally obtained by an agency before, at or

after the commencement of this Schedule.

Schedule 3

Licensing and false or misleading documents

Part 1

Australian financial services licences

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

Schedule 3--Licensing and false or

misleading documents

Part 1--Australian financial services licences

Corporations Act 2001

1 Section 9 (definition of

responsible officer

)

Repeal the definition.

2 At the end of subsection 912C(1)

Add:

; or (c) for the purposes of considering whether the requirement in

section 913BA (fit and proper person test) is satisfied in

relation to the licensee and the licence--any matters

mentioned in section 913BB in relation to a person

mentioned in a paragraph of subsection 913BA(1).

3 After section 912D

Insert:

912DA Obligation to notify ASIC of change in control

(1) If an entity starts to control, or stops controlling, a financial

services licensee, the licensee must lodge a notification with ASIC:

(a) in the prescribed form; and

(b) before the end of 30 business days after the day the entity

starts to control, or stops controlling, the financial services

licensee.

Note:

Failure to comply with this subsection is an offence: see

subsection 1311(1).

(2) An offence based on subsection (1) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the

Criminal Code

Licensing and false or misleading documents

Schedule 3

Australian financial services licences

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

912DB Obligation to notify ASIC if licensee does not provide

financial service

(1) If a financial services licensee does not provide a financial service

covered by the licence before the end of 6 months after the licence

is granted, the licensee must lodge a notification with ASIC:

(a) in the prescribed form; and

(b) before the end of 15 business days after the end of the 6

months.

Note:

Failure to comply with this subsection is an offence: see

subsection 1311(1).

(2) An offence based on subsection (1) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the

Criminal Code

4 Paragraphs 913B(1)(c) and (ca)

Repeal the paragraphs, substitute:

is satisfied in relation to the applicant and the licence applied

for; and

5 Subsections 913B(2), (3) and (4)

Repeal the subsections, substitute:

(2) However, ASIC must refuse to grant the Australian financial

services licence if ASIC is satisfied that:

(a) the application for the licence, or any information, audit

report or statement lodged with ASIC in accordance with

subsection (3), was false in a material particular or materially

misleading; or

(b) there was an omission of a material matter from the

application or the information, audit report or statement.

ASIC may request information etc. from applicant

(3) ASIC may give a written notice to the applicant requesting the

applicant to lodge with ASIC, within the time specified in the

notice, any of the following:

Schedule 3

Licensing and false or misleading documents

Part 1

Australian financial services licences

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(a) information specified in the notice in relation to any matters

that ASIC may or must have regard to in deciding whether to

grant the licence;

(b) an audit report, prepared by a suitably qualified person

specified in the notice, in relation to matters that ASIC may

or must have regard to in deciding whether to grant the

licence;

statement that either:

(i) informs ASIC of any material changes in any

information provided to ASIC in, or in connection with,

the application; or

(ii) confirms that there have been no such changes.

(4) To avoid doubt:

(a) a notice under subsection (3), and the information, audit

report or statement requested in the notice, may relate to any

person mentioned in section 913BA in relation to the

applicant and the licence applied for; and

(b) subsection (4B) applies in relation to such a request even if

the applicant is unable to comply with the request.

(4A) ASIC may, by written notice to the applicant within the time

specified in the notice:

(a) withdraw a request under subsection (3); or

(b) extend the time specified in the notice.

(4B) If the applicant does not lodge with ASIC the information, audit

report or statement requested in a notice under subsection (3)

within the specified time, the applicant is taken to have withdrawn

the application.

(4C) To avoid doubt, subsection (5) does not apply to an application that

is taken to have been withdrawn under subsection (4B).

(4D) The regulations may make provision in relation to audit reports that

applicants may be requested to lodge under paragraph (3)(b).

Licensing and false or misleading documents

Schedule 3

Australian financial services licences

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

Applicant must be given hearing before refusal of licence

6 Subsection 913B(5)

Omit "However,".

7 After section 913B

Insert:

913BA Fit and proper person test

(1) For the purposes of paragraph 913B(1)(c), subsection 914B(2) and

paragraph 915C(1)(b), the requirement in this section is satisfied in

relation to a person (the

first person

) and a licence, or a proposed

licence, if ASIC is satisfied that there is no reason to believe any of

the following:

(a) that the first person is not a fit and proper person to provide

the financial services covered by the licence;

(b) if the first person is a body corporate--that an officer of the

first person is not a fit and proper person to perform one or

more functions as an officer of an entity that provides the

financial services covered by the licence;

trust:

(i) that any of the partners or trustees are not fit and proper

persons to provide the financial services covered by the

licence; or

(ii) that any of the senior managers of the partnership or the

trust are not fit and proper persons to perform one or

more functions as an officer of an entity that provides

the financial services covered by the licence;

(d) that any person who controls the first person is not a fit and

proper person to control an entity that provides the financial

services covered by the licence;

(e) if a controller mentioned in paragraph (d) is a body

corporate--that an officer of the controller is not a fit and

proper person to perform one or more functions as an officer

of an entity that controls an entity that provides the financial

services covered by the licence;

Schedule 3

Licensing and false or misleading documents

Part 1

Australian financial services licences

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(f) if a controller mentioned in paragraph (d) is a partnership or

the multiple trustees of a trust:

(i) that any of the partners or trustees are not fit and proper

persons to control an entity that provides the financial

services covered by the licence; or

(ii) that any of the senior managers of the partnership or the

trust are not fit and proper persons to perform one or

more functions as an officer of an entity that controls an

entity that provides the financial services covered by the

licence.

(2) In considering whether a person is fit and proper for a purpose

mentioned in a paragraph of subsection (1), ASIC must have

regard to the matters in section 913BB.

913BB Fit and proper person test--matters to which ASIC must

have regard

(1) ASIC must have regard to the matters set out in subsection (2)

(subject to Part VIIC of the

Crimes Act 1914

) for the purposes of

applying any of the following provisions to a person:

(a) a paragraph of subsection 913BA(1);

(b) paragraph 920A(1)(d).

Note:

Part VIIC of the

Crimes Act 1914

includes provisions that, in certain

circumstances, relieve persons from the requirement to disclose spent

convictions and require persons aware of such convictions to disregard

them.

(2) The matters are as follows:

(a) whether any of the following of the person has ever been

suspended or cancelled:

(i) an Australian financial services licence;

(ii) an Australian credit licence, or a registration under the

Transitional Act, within the meaning of the

National

Consumer Credit Protection Act 2009

;

(b) whether any of the following has ever been made against the

person:

(i) a banning order, or a disqualification order under

Subdivision B of Division 8 of this Part;

Licensing and false or misleading documents

Schedule 3

Australian financial services licences

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(ii) a banning order, or a disqualification order, under

Part 2-4 of the

National Consumer Credit Protection

Act 2009

;

been disqualified under this Act, or any other law of the

Commonwealth or of a State or Territory, from managing

corporations;

(d) whether the person has ever been banned from engaging in a

credit activity (within the meaning of the

National Consumer

Credit Protection Act 2009

) under a law of a State or

Territory;

(e) whether the person has ever been linked to a refusal or failure

to give effect to a determination made by AFCA;

(f) whether the person has ever:

(i) been a Chapter 5 body corporate or an insolvent under

administration; or

(ii) if the person is a partnership--had a creditor's petition

or a debtor's petition presented against it under

Division 2 or 3 of Part IV of the

Bankruptcy Act 1966

;

(g) if the person is the multiple trustees of a trust--whether a

trustee of the trust has ever been a Chapter 5 body corporate

or an insolvent under administration;

(h) whether, in the last 10 years, the person has been convicted

of an offence;

(i) any relevant information given to ASIC by a State or

Territory, or an authority of a State or Territory, in relation to

the person;

(j) any other matter prescribed by the regulations;

(k) any other matter ASIC considers relevant.

8 Subsection 914A(1)

After "this section", insert "and section 914B".

9 At the end of subsection 914A(3)

Add ", or imposing or varying conditions in accordance with an

application under paragraph (2)(b)".

Schedule 3

Licensing and false or misleading documents

Part 1

Australian financial services licences

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

10 At the end of Subdivision B of Division 4 of Part 7.6

Add:

914B ASIC may request information etc. in relation to an

application for conditions to be varied

(1) This section applies if a financial services licensee applies under

paragraph 914A(2)(b) for ASIC to:

(a) impose conditions, or additional conditions, on the licence; or

(b) vary or revoke conditions imposed on the licence.

However, this section does not apply in relation to a power to

which paragraph 914A(5)(a) applies.

(2) Without limiting ASIC's power to refuse to grant the application,

ASIC may refuse to grant the application if the requirement in

section 913BA (fit and proper person test) is not satisfied in

relation to the applicant and the licence as proposed to be varied.

ASIC may request information etc. from applicant

(3) ASIC may give a written notice to the applicant requesting the

applicant to lodge with ASIC, within the time specified in the

notice, any of the following:

(a) information specified in the notice in relation to any matters

that ASIC must have regard to for the purposes of deciding

whether the requirement in section 913BA is satisfied as

mentioned in subsection (2) of this section;

(b) an audit report, prepared by a suitably qualified person

specified in the notice, in relation to matters that ASIC must

have regard to for the purposes of deciding whether the

requirement in section 913BA is satisfied as mentioned in

subsection (2) of this section;

either:

(i) informs ASIC of any material changes in any

information provided to ASIC in, or in connection with,

the application; or

(ii) confirms that there have been no such changes.

(4) To avoid doubt:

Licensing and false or misleading documents

Schedule 3

Australian financial services licences

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(a) a notice under subsection (3), and the information, audit

report or statement requested in the notice, may relate to any

person mentioned in section 913BA in relation to the

applicant and the licence as proposed to be varied; and

(b) subsection (6) applies in relation to such a request even if the

applicant is unable to comply with the request.

(5) ASIC may, by written notice to the applicant within the time

specified in the notice:

(a) withdraw the request; or

(b) extend the time specified in the notice.

(6) If the applicant does not lodge with ASIC the information, audit

report or statement requested by ASIC in a notice under

subsection (3) within the specified time, the applicant is taken to

have withdrawn the application.

(7) To avoid doubt, subsection (9) does not apply to an application that

is taken to have been withdrawn under subsection (6).

(8) The regulations may make provision in relation to audit reports that

applicants may be requested to lodge under paragraph (3)(b).

Applicant must be given hearing before refusal of application

(9) ASIC may only refuse to grant the application after giving the

applicant an opportunity:

(a) to appear, or be represented, at a hearing before ASIC that

takes place in private; and

(b) to make submissions to ASIC in relation to the matter.

11 Subsection 915B(1) (heading)

Omit "

a natural person

", substitute "

an individual

12 Subsection 915B(1)

Omit "a natural person", substitute "an individual".

13 After subsection 915B(1)

Insert:

Schedule 3

Licensing and false or misleading documents

Part 1

Australian financial services licences

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(1A) ASIC may also cancel an Australian financial services licence held

by an individual, by giving written notice to the individual, if the

individual does not provide a financial service covered by the

licence before the end of 6 months after the licence is granted.

14 After paragraph 915B(2)(b)

Insert:

(ba) an officer of the partnership becomes an insolvent under

administration; or

15 After subsection 915B(2)

Insert:

(2A) ASIC may also cancel an Australian financial services licence held

by a partnership, by giving written notice to the partnership, if the

partnership does not provide a financial service covered by the

licence before the end of 6 months after the licence is granted.

16 Subsection 915B(3)

Omit "if the body", substitute "if".

17 Paragraph 915B(3)(a)

Before "ceases", insert "the body".

18 Paragraph 915B(3)(b)

Before "becomes", insert "the body".

19 After paragraph 915B(3)(b)

Insert:

(ba) an officer of the body becomes an insolvent under

administration; or

20 Paragraphs 915B(3)(c), (caa) and (ca)

Before "is", insert "the body".

21 Paragraph 915B(3)(d)

Before "lodges", insert "the body".

Licensing and false or misleading documents

Schedule 3

Australian financial services licences

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

22 Paragraph 915B(3)(e)

Before "is liable", insert "the body".

23 After subsection 915B(3)

Insert:

(3A) ASIC may also cancel an Australian financial services licence held

by a body corporate, by giving written notice to the body, if the

body does not provide a financial service covered by the licence

before the end of 6 months after the licence is granted.

24 Paragraph 915B(4)(b)

Omit "a natural person", substitute "an individual".

25 After paragraph 915B(4)(c)

Insert:

(ca) an officer of a trustee becomes an insolvent under

administration; or

26 Subsection 915B(4) (note 1)

Omit "Note 1", substitute "Note".

27 Subsection 915B(4) (note 2)

Repeal the note.

28 At the end of section 915B

Add:

(4A) ASIC may also cancel an Australian financial services licence held

by the trustees of a trust, by giving written notice to the trustees, if

the trustees of the trust do not provide a financial service covered

by the licence before the end of 6 months after the licence is

granted.

29 Paragraph 915C(1)(b)

Repeal the paragraph, substitute:

(b) the requirement in section 913BA (fit and proper person test)

is not satisfied in relation to the licensee and the licence;

Schedule 3

Licensing and false or misleading documents

Part 1

Australian financial services licences

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

30 At the end of subsection 915C(1)

Add:

; (f) the application for the licence:

(i) was false in a material particular or materially

misleading; or

(ii) omitted a material matter;

(g) any information, audit report or statement lodged with ASIC

in accordance with a request under subsection 913B(3) in

relation to the application for the licence:

(i) was false in a material particular or materially

misleading; or

(ii) omitted a material matter;

(h) an application made by the licensee under

paragraph 914A(2)(b) in relation to the licence:

(i) was false in a material particular or materially

misleading; or

(ii) omitted a material matter;

(i) any information, audit report or statement lodged with ASIC

in accordance with a request under subsection 914B(3) in

relation to an application made by the licensee under

paragraph 914A(2)(b) in relation to the licence:

(i) was false in a material particular or materially

misleading; or

(ii) omitted a material matter.

31 Subsection 915C(2)

Repeal the subsection.

32 In the appropriate position in Chapter 10

Insert:

Licensing and false or misleading documents

Schedule 3

Australian financial services licences

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

Part 10.39--Transitional provisions relating to

Schedule 3 to the Financial Sector Reform

(Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Act

2019

1663 Definitions

In this Part:

amending Part

means Part 1 of Schedule 3 to the

Financial Sector

Reform (Hayne Royal Commission Response--Stronger Regulators

(2019 Measures)) Act 2019

commencement day

means the day the amending Part commences.

1664 Application--existing financial services licensee

(1) Subject to this section, the amendments made by the amending Part

apply on and after the commencement day to a financial services

licensee whose licence was granted before, on or after the

commencement day.

(2) Section 912DA, as inserted by the amending Part, applies in

relation to an entity that starts to control, or stops controlling, the

licensee on or after the commencement day.

(3) In relation to an Australian financial services licence in force

immediately before the commencement day, the period of 6

months referred to in subsection 912DB(1) or 915B(1A), (2A),

(3A) or (4A), as inserted by the amending Part, begins at the start

of the commencement day.

(4) The reference in paragraph 915C(1)(g), as inserted by the

amending Part, to information lodged with ASIC in accordance

with a request under subsection 913B(3) in relation to an

application for a licence includes information provided in

accordance with paragraph 913B(1)(ca) before the commencement

day.

Schedule 3

Licensing and false or misleading documents

Part 1

Australian financial services licences

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

1665 Application--applications made before commencement

(1) The following applications made before the commencement day,

and not yet granted or refused at the start of the commencement

day, are to be dealt with, on and after the commencement day, in

accordance with this Act as amended by the amending Part:

(a) an application under section 913A for an Australian financial

services licence;

(b) an application under paragraph 914A(2)(b) for conditions on

an Australian financial services licence to be imposed, varied

or revoked.

(2) A request for information under paragraph 913B(1)(ca) that was

made before the commencement day and that has not, at the start of

the commencement day, been complied with is taken, on and after

the commencement day, to be a request for information under

paragraph 913B(3)(a) as amended by the amending Part.

33 Schedule 3

Insert:

Subsection 912DA(1)

30 penalty units

Subsection 912DB(1)

30 penalty units

Licensing and false or misleading documents

Schedule 3

Australian credit licences

Part 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

Part 2--Australian credit licences

National Consumer Credit Protection Act 2009

34 Paragraphs 37(1)(c) and (d)

Repeal the paragraphs, substitute:

satisfied in relation to the applicant and the licence applied

for; and

35 Subsections 37(2) and (3)

Repeal the subsections, substitute:

False, misleading or incomplete information

(2) ASIC must refuse to grant the licence if ASIC is satisfied that:

(a) the application for the licence, or any information, audit

report or statement lodged with ASIC in accordance with

subsection (4), was false in a material particular or materially

misleading; or

(b) there was an omission of a material matter from the

application or the information, audit report or statement.

36 Subsection 37(4) (heading)

Omit "

or audit report

", substitute "

etc.

37 Subsection 37(4)

Omit "either or both", substitute "any".

38 Paragraph 37(4)(a)

Omit "additional".

39 At the end of subsection 37(4)

Add:

; (c) if ASIC proposes to grant the applicant a licence--a

statement that either:

Schedule 3

Licensing and false or misleading documents

Part 2

Australian credit licences

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(i) informs ASIC of any material changes in any

information provided to ASIC in, or in connection with,

the application; or

(ii) confirms that there have been no such changes.

40 Subsection 37(5)

Repeal the subsection, substitute:

(5) To avoid doubt:

(a) a notice under subsection (4), and the information, audit

report or statement requested in the notice, may relate to any

person mentioned in section 37A in relation to the applicant

and the licence applied for; and

(b) subsection (7) applies in relation to such a request even if the

applicant is unable to comply with the request.

(6) ASIC may, by written notice to the applicant before the time

specified in the notice:

(a) withdraw a request under subsection (4); or

(b) extend the time specified in the notice.

(7) If the applicant does not lodge with ASIC the information, audit

report or statement requested by ASIC in a notice under

subsection (4) within the specified time, the applicant is taken to

have withdrawn the application.

(8) To avoid doubt, section 41 does not apply to an application that is

taken to have been withdrawn under subsection (7) of this section.

41 After section 37

Insert:

37A Fit and proper person test

(1) For the purposes of paragraph 37(1)(c), subsection 46A(2) and

paragraph 55(1)(c), the requirement in this section is satisfied in

relation to a person (the

first person

) and a licence, or a proposed

licence, if ASIC is satisfied that there is no reason to believe any of

the following:

Licensing and false or misleading documents

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Australian credit licences

Part 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(a) that the first person is not a fit and proper person to engage in

the credit activities authorised by the licence;

(b) if the first person is a body corporate--that an officer (within

the meaning of the

Corporations Act 2001

) of the first person

is not a fit and proper person to perform one or more

functions as an officer of a person that engages in the credit

activities authorised by the licence;

trust:

(i) that any of the partners or trustees are not fit and proper

persons to engage in the credit activities authorised by

the licence; or

(ii) that any of the senior managers of the partnership or the

trust are not fit and proper persons to perform one or

more functions as an officer (within the meaning of the

Corporations Act 2001

) of a person that engages in the

credit activities authorised by the licence;

(d) that any person who controls the first person is not a fit and

proper person to control a person that engages in the credit

activities authorised by the licence;

(e) if a controller mentioned in paragraph (d) is a body

corporate--that an officer (within the meaning of the

Corporations Act 2001

) of the controller is not a fit and

proper person to perform one or more functions as an officer

of an entity (as defined by section 64A of that Act) that

controls a person that engages in the credit activities

authorised by the licence;

(f) if a controller mentioned in paragraph (d) is a partnership or

the multiple trustees of a trust:

(i) that any of the partners or trustees are not fit and proper

persons to control a person that engages in the credit

activities authorised by the licence; or

(ii) that any of the senior managers of the partnership or the

trust are not fit and proper persons to perform one or

more functions as an officer (within the meaning of the

Corporations Act 2001

) of an entity (as defined by

section 64A of that Act) that controls a person that

engages in the credit activities authorised by the licence.

Schedule 3

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Part 2

Australian credit licences

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(2) In considering whether a person is fit and proper for a purpose

mentioned in subsection (1), ASIC must have regard to the matters

in section 37B.

37B Fit and proper person test--matters to which ASIC must have

regard

(1) ASIC must have regard to the matters set out in subsection (2)

(subject to Part VIIC of the

Crimes Act 1914

) for the purposes of

applying any of the following provisions to a person:

(a) a paragraph of subsection 37A(1);

(b) paragraph 80(1)(f).

Note:

Part VIIC of the

Crimes Act 1914

includes provisions that, in certain

circumstances, relieve persons from the requirement to disclose spent

convictions and require persons aware of such convictions to disregard

them.

(2) The matters are as follows:

(a) whether any of the following of the person has ever been

suspended or cancelled:

(i) a licence, or a registration under the Transitional Act;

(ii) an Australian financial services licence;

(b) whether any of the following has ever been made against the

person:

(i) a banning order, or a disqualification order under

Part 2-4;

(ii) a banning order, or a disqualification order, under

Division 8 of Part 7.6 of the

Corporations Act 2001

;

been disqualified under the

Corporations Act 2001

, or any

other law of the Commonwealth or of a State or Territory,

from managing corporations;

(d) whether the person has ever been banned from engaging in a

credit activity under a law of a State or Territory;

(e) whether the person has ever been linked to a refusal or failure

to give effect to a determination made by AFCA (as defined

in section 910C of the

Corporations Act 2001

);

(f) if the person is not the multiple trustees of a trust--whether

the person has ever been insolvent;

Licensing and false or misleading documents

Schedule 3

Australian credit licences

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Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(g) if the person is the multiple trustees of a trust--whether a

trustee of the trust has ever been insolvent;

(h) whether, in the last 10 years, the person has been convicted

of an offence;

(i) any relevant information given to ASIC by a State or

Territory, or an authority of a State or Territory, in relation to

the person;

(j) any other matter prescribed by the regulations;

(k) any other matter ASIC considers relevant.

42 Subsection 45(1)

Before "ASIC may", insert "Subject to section 46A,".

43 At the end of subsection 45(5)

Add ", or imposing or varying conditions in accordance with an

application under paragraph (2)(b)".

44 At the end of Division 4 of Part 2-2

Add:

46A ASIC may request information etc. in relation to an application

for conditions to be varied

(1) This section applies if a licensee applies under paragraph 45(2)(b)

for ASIC to:

(a) impose conditions, or additional conditions, on the licence; or

(b) vary or revoke conditions imposed on the licence.

However, this section does not apply in relation to a power to

which paragraph 46(2)(a) applies.

(2) ASIC must not grant the application unless the requirement in

section 37A (fit and proper person test) is satisfied in relation to the

applicant and the licence as proposed to be varied.

ASIC may request information etc. from applicant

(3) ASIC may give a written notice to the applicant requesting the

applicant to lodge with ASIC, within the time specified in the

notice, any of the following:

Schedule 3

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Part 2

Australian credit licences

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(a) information specified in the notice in relation to any matters

that ASIC must have regard to for the purposes of deciding

whether the requirement in section 37A is satisfied as

mentioned in subsection (2) of this section;

(b) an audit report, prepared by a suitably qualified person

specified in the notice, in relation to matters that ASIC must

have regard to for the purposes of deciding whether the

requirement in section 37A is satisfied as mentioned in

subsection (2) of this section;

either:

(i) informs ASIC of any material changes in any

information provided to ASIC in, or in connection with,

the application; or

(ii) confirms that there have been no such changes.

(4) To avoid doubt:

(a) a notice under subsection (3), and the information, audit

report or statement requested in the notice, may relate to any

person mentioned in section 37A in relation to the applicant

and the licence as proposed to be varied; and

(b) subsection (6) applies in relation to such a request even if the

applicant is unable to comply with the request.

(5) ASIC may, by written notice to the applicant within the time

specified in the notice:

(a) withdraw the request; or

(b) extend the time specified in the notice.

(6) If the applicant does not lodge with ASIC the information, audit

report or statement requested by ASIC in a notice under

subsection (3) within the specified time, the applicant is taken to

have withdrawn the application.

(7) To avoid doubt, subsection (8) does not apply to an application that

is taken to have been withdrawn under subsection (6).

Applicant must be given hearing before refusal of application

(8) ASIC may only refuse to grant the application after giving the

applicant an opportunity:

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Australian credit licences

Part 2

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Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(a) to appear, or be represented, at a hearing before ASIC that

takes place in private; and

(b) to make submissions to ASIC in relation to the matter.

45 Subsection 49(1)

Omit all the words after "containing specified information", substitute:

about:

(a) the credit activities engaged in by the licensee or its

representatives; or

(b) for the purposes of considering whether the requirement in

section 37A (fit and proper person test) is satisfied in relation

to the licensee and the licence--any matters mentioned in

section 37B in relation to a person mentioned in a paragraph

of subsection 37A(1).

46 At the end of Division 5 of Part 2-2

Add:

53A Obligation to notify ASIC of change in control

Requirement to notify ASIC of change in control

(1) If an entity (as defined by section 64A of the

Corporations Act

2001

) starts to control, or stops controlling, a licensee, the licensee

must lodge a notification with ASIC:

(a) in the approved form; and

(b) before the end of 30 business days after the day the entity

starts to control, or stops controlling, the licensee.

Strict liability offence

(2) A person commits an offence if:

(a) the person is subject to a requirement under subsection (1) to

lodge a notification with ASIC; and

(b) the person engages in conduct; and

Criminal penalty:

30 penalty units.

Schedule 3

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Part 2

Australian credit licences

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(3) Subsection (2) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the

Criminal Code

53B Obligation to notify ASIC if licensee does not engage in credit

activities

Requirement to notify ASIC if licensee does not engage in credit

activities

(1) If a licensee does not engage in the credit activities authorised by

the licence before the end of 6 months after the licence is granted,

the licensee must lodge a notification with ASIC:

(a) in the approved form; and

(b) before the end of 15 business days after the end of the 6

months.

Strict liability offence

(2) A person commits an offence if:

(a) the person is subject to a requirement under subsection (1) to

lodge a notification with ASIC; and

(b) the person engages in conduct; and

Criminal penalty:

30 penalty units.

(3) Subsection (2) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the

Criminal Code

47 Paragraph 54(1)(b)

Omit "does not engage, or ceases to engage,", substitute "ceases to

engage".

48 Subparagraphs 54(1)(c)(ii) and (iii)

Omit "who performs duties in relation to credit activities".

49 After subsection 54(1)

Insert:

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Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(1A) ASIC may cancel a licensee's licence if the licensee does not

engage in the credit activities authorised by the licence before the

end of 6 months after the licence is granted.

50 Paragraph 55(1)(c)

Repeal the paragraph, substitute:

not satisfied in relation to the licensee and the licence; or

51 At the end of subsection 55(1)

Add:

; or (e) any information, audit report or statement lodged with ASIC

in accordance with a request under subsection 37(4) in

relation to the application for the licence:

(i) was false in a material particular or materially

misleading; or

(ii) omitted a material matter; or

(f) an application made by the licensee under paragraph 45(2)(b)

in relation to the licence:

(i) was false in a material particular or materially

misleading; or

(ii) omitted a material matter; or

(g) any information, audit report or statement lodged with ASIC

in accordance with a request under subsection 46A(3) in

relation to an application made by the licensee under

paragraph 45(2)(b) in relation to the licence:

(i) was false in a material particular or materially

misleading; or

(ii) omitted a material matter.

52 Subsections 55(2) and (3)

Repeal the subsections.

53 Paragraph 106(b)

After "subsection 37(4)", insert "or 46A(3)".

54 After subparagraph 243(1)(c)(i)

Insert:

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Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(ia) section 46A (which deals with when ASIC may grant an

application for a variation of the conditions on a

licence); or

National Consumer Credit Protection (Transitional and

Consequential Provisions) Act 2009

55 In the appropriate position

Insert:

Schedule 13--Application and transitional

provisions for Schedule 3 to the

Financial Sector Reform (Hayne Royal

Commission Response--Stronger

Regulators (2019 Measures)) Act 2019

1 Definitions

In this Schedule:

amending Part

means Part 2 of Schedule 3 to the

Financial Sector

Reform (Hayne Royal Commission Response--Stronger Regulators

(2019 Measures)) Act 2019

commencement day

means the day the amending Part commences.

2 Application

--existing licensee

(1)

Subject to this item, the amendments made by the amending Part apply

on and after the commencement day to a licensee whose licence was

granted before, on or after the commencement day.

(2)

Section 53A of the National Credit Act, as inserted by the amending

Part, applies in relation to an entity that starts to control, or stops

controlling, the licensee on or after the commencement day.

(3)

In relation to a licence in force immediately before the commencement

day, the period of 6 months referred to in subsection 53B(1) or 54(1A)

of the National Credit Act, as inserted by the amending Part, begins at

the start of the commencement day.

Licensing and false or misleading documents

Schedule 3

Australian credit licences

Part 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(4)

The reference in paragraph 55(1)(e) of the National Credit Act, as

inserted by the amending Part, to information, an audit report or a

statement lodged with ASIC in accordance with a request under

subsection 37(4) of that Act in relation to an application for a licence

includes such information provided in accordance with such a request

before the commencement day.

3 Application

--applications made before commencement

The following applications made before the commencement day, and

not yet granted or refused at the start of the commencement day, are to

be dealt with, on and after the commencement day, in accordance with

the National Credit Act as amended by the amending Part:

(a) an application under section 36 of the National Credit Act for

a licence;

(b) an application under paragraph 45(2)(b) of the National

Credit Act for conditions on a licence to be imposed, varied

or revoked.

Schedule 3

Licensing and false or misleading documents

Part 3

False or misleading documents

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

Part 3--False or misleading documents

Corporations Act 2001

56 Subsection 922M(4) (note)

Repeal the note, substitute:

Note:

A person may commit an offence or contravene a civil penalty

provision if the person gives false or misleading information (see

section 1308 of this Act and section 137.1 of the

Criminal Code

57 Subsection 922N(1) (note)

Repeal the note, substitute:

Note:

A person may commit an offence or contravene a civil penalty

provision if the person gives false or misleading information (see

section 1308 of this Act and section 137.1 of the

Criminal Code

58 Section 1308

Repeal the section, substitute:

1308B False or misleading statements about share capital

(1) A corporation must not advertise or publish:

(a) a statement of the amount of its capital that is misleading; or

(b) a statement in which the total of all amounts paid and unpaid

on shares in the company is stated but the amount of paid up

capital or the amount of any charge on uncalled capital is not

stated.

(2) An offence based on subsection (1) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the

Criminal Code

1308 False or misleading documents

Fault-based offence

(1) A person commits an offence if:

(a) a document:

(i) is required under or for the purposes of this Act; or

Licensing and false or misleading documents

Schedule 3

False or misleading documents

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No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(ii) is lodged with or submitted to ASIC; and

(b) the person:

(i) makes, or authorises the making of, a statement in the

document; or

(ii) omits, or authorises the omission of, a matter or thing

from the document; and

misleading because of the statement or omission.

Note:

For when a document is

materially false or misleading

, see

subsection (6).

(2) A person is not liable to be proceeded against for an offence in

consequence of a regulation made under section 1364 as well as for

an offence against subsection (1) of this section.

Strict liability offence--failure to take reasonable steps

(3) A person commits an offence of strict liability if:

(a) a document:

(i) is required under or for the purposes of this Act; or

(ii) is lodged with or submitted to ASIC; and

(b) the person:

(i) makes, or authorises the making of, a statement in the

document; or

(ii) omits, or authorises the omission of, a matter or thing

from the document; and

statement or omission; and

(d) the person did not take all reasonable steps to ensure that the

document was not materially false or misleading because of

the statement or omission.

Note 1:

For when a document is

materially false or misleading

, see

subsection (6).

Note 2:

For strict liability, see section 6.1 of the

Criminal Code

Civil penalty--knowledge or recklessness

(4) A person contravenes this subsection if:

(a) a document:

Schedule 3

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Part 3

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Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(i) is required under or for the purposes of this Act; or

(ii) is lodged with or submitted to ASIC; and

(b) the person:

(i) makes, or authorises the making of, a statement in the

document; or

(ii) omits, or authorises the omission of, a matter or thing

from the document; and

document is materially false or misleading because of the

statement or omission.

Note 1:

For when a document is

materially false or misleading

, see

subsection (6).

Note 2:

This subsection is a civil penalty provision (see section 1317E).

Civil penalty--failure to take reasonable steps

(5) A person contravenes this subsection if:

(a) a document:

(i) is required under or for the purposes of this Act; or

(ii) is lodged with or submitted to ASIC; and

(b) the person:

(i) makes, or authorises the making of, a statement in a

document; or

(ii) omits, or authorises the omission of, a matter or thing

from a document; and

statement or omission; and

(d) the person did not take all reasonable steps to ensure that the

document was not materially false or misleading because of

the statement or omission.

Note 1:

For when a document is

materially false or misleading

, see

subsection (6).

Note 2:

This subsection is a civil penalty provision (see section 1317E).

When a document is materially false or misleading

(6) For the purposes of this section, a document is

materially

false or

misleading

if:

Licensing and false or misleading documents

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Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(a) the document includes a statement that:

(i) is false in a material particular or materially misleading;

(ii) is based on information that is false in a material

particular or materially misleading, or has omitted from

it a matter or thing the omission of which renders the

document materially misleading; or

(b) a matter or thing is omitted from the document and, without

the matter or thing, the document is false in a material

particular or materially misleading.

Other interpretive provisions

(7) For the purposes of this section, a person who votes in favour of a

resolution approving, or who otherwise approves, a document is

taken to have authorised:

(a) the making of any statement in the document; and

(b) the omission of any matter or thing from the document.

(8) For the purposes of this section, a statement, report or other

document that:

(a) relates to affairs of a company or of a subsidiary of a

company; and

(b) is attached to or included with a report of the directors

provided under section 314 to members of the company or

laid before the company at an annual general meeting of the

company;

is taken to be part of the report referred to in paragraph (b) of this

subsection, even if it is not otherwise required by this Act to be laid

before the company in general meeting.

(9) For the purposes of this section:

(a) a notice under subsection 708AA(2), 708A(5), 1012DAA(2)

or 1012DA(5) is taken to be a notice required for the

purposes of this Act; and

(b) a notice under subsection 708AA(2), 708A(5), 1012DAA(2)

or 1012DA(5) is taken to be misleading in a material respect

if it fails to comply with paragraph 708AA(7)(d), 708A(6)(e),

1012DAA(7)(e) or 1012DA(6)(f).

Schedule 3

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Part 3

False or misleading documents

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

59 Subsection 1317E(3) (after table item dealing with

subsections 1211B(1) and (2))

Insert:

subsections 1308(4) and

(5)

false or misleading

documents

uncategorised

60 Schedule 3 (table items dealing with subsections 1308(1),

(2), (4) and (8))

Repeal the items, substitute:

Subsection 1308B(1)

20 penalty units

Subsection 1308(1)

5 years imprisonment

Subsection 1308(3)

20 penalty units

National Consumer Credit Protection Act 2009

61 Section 225

Repeal the section, substitute:

225 False or misleading documents

Fault-based offence

(1) A person commits an offence if:

(a) a document:

(i) is required under or for the purposes of this Act; or

(ii) is lodged with or submitted to ASIC under or for the

purposes of this Act; and

(b) the person:

(i) makes, or authorises the making of, a statement in the

document; or

(ii) omits, or authorises the omission of, a matter or thing

from the document; and

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Schedule 3

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Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

misleading because of the statement or omission.

Criminal penalty:

5 years imprisonment.

Note:

For when a document is

materially false or misleading

, see

subsection (5).

Strict liability offence--failure to take reasonable steps

(2) A person commits an offence of strict liability if:

(a) a document:

(i) is required under or for the purposes of this Act; or

(ii) is lodged with or submitted to ASIC under or for the

purposes of this Act; and

(b) the person:

(i) makes, or authorises the making of, a statement in the

document; or

(ii) omits, or authorises the omission of, a matter or thing

from the document; and

statement or omission; and

(d) the person did not take all reasonable steps to ensure that the

document was not materially false or misleading because of

the statement or omission.

Criminal penalty:

20 penalty units.

Note 1:

For when a document is

materially false or misleading

, see

subsection (5).

Note 2:

For strict liability, see section 6.1 of the

Criminal Code

Civil penalty--knowledge or recklessness

(3) A person contravenes this subsection if:

(a) a document:

(i) is required under or for the purposes of this Act; or

(ii) is lodged with or submitted to ASIC under or for the

purposes of this Act; and

(b) the person:

Schedule 3

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Part 3

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Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(i) makes, or authorises the making of, a statement in the

document; or

(ii) omits, or authorises the omission of, a matter or thing

from the document; and

document is materially false or misleading because of the

statement or omission.

Civil penalty:

5,000 penalty units.

Note:

For when a document is

materially false or misleading

, see

subsection (5).

Civil penalty--failure to take reasonable steps

(4) A person contravenes this subsection if:

(a) a document:

(i) is required under or for the purposes of this Act; or

(ii) is lodged with or submitted to ASIC under or for the

purposes of this Act; and

(b) the person:

(i) makes, or authorises the making of, a statement in a

document; or

(ii) omits, or authorises the omission of, a matter or thing

from a document; and

statement or omission; and

(d) the person did not take all reasonable steps to ensure that the

document was not materially false or misleading because of

the statement or omission.

Civil penalty:

5,000 penalty units.

Note:

For when a document is

materially false or misleading

, see

subsection (5).

When a document is materially false or misleading

(5) For the purposes of this section, a document is

materially

false or

misleading

if:

(a) the document includes a statement that:

Licensing and false or misleading documents

Schedule 3

False or misleading documents

Part 3

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(i) is false in a material particular or materially misleading;

(ii) is based on information that is false in a material

particular or materially misleading, or has omitted from

it a matter or thing the omission of which renders the

document materially misleading; or

(b) a matter or thing is omitted from the document and, without

the matter or thing, the document is false in a material

particular or materially misleading.

Authorisations

(6) For the purposes of this section, a person who votes in favour of a

resolution approving, or who otherwise approves, a document is

taken to have authorised:

(a) the making of any statement in the document; and

(b) the omission of any matter or thing from the document.

Schedule 4

Banning orders

Part 1

Corporations amendments

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

Schedule 4--Banning orders

Part 1--Corporations amendments

Corporations Act 2001

1 Section 9

Insert:

banning order

means an order made under subsection 920A(1).

2 Section 9 (definition of

control

)

Repeal the definition, substitute:

control

(a) unless paragraph (b) applies--has the meaning given by

section 50AA; and

(b) when used in Part 7.6--has the meaning given by

section 910B.

3 Section 9

Insert:

linked to a refusal or failure to give effect to a determination

made by AFCA

has the meaning given by section 910C.

4 Section 910A (definition of

control

)

Repeal the definition.

5 At the end of Division 1 of Part 7.6

Add:

910B Meaning of

control

(1)

Control

, of a body corporate, is:

(a) having the capacity to cast, or control the casting of, more

than one half of the maximum number of votes that might be

cast at a general meeting of the body corporate; or

Banning orders

Schedule 4

Corporations amendments

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(b) directly or indirectly holding more than one half of the issued

share capital of the body corporate (not including any part of

the issued share capital that carries no right to participate

beyond a specified amount in a distribution of either profits

or capital, and not including MCIs); or

corporate's board or governing body; or

(d) having the capacity to determine the outcome of decisions

about the body corporate's financial and operating policies,

taking into account:

(i) the practical influence that can be exerted (rather than

the rights that can be enforced); and

(ii) any practice or pattern of behaviour affecting the body

corporate's financial or operating policies (whether or

not it involves a breach of an agreement or a breach of

trust).

(2)

Control

, of an entity other than a body corporate, is:

(a) having the capacity to control the composition of the entity's

board or governing body (if any); or

(b) having the capacity to determine the outcome of decisions

about the entity's financial and operating policies, taking into

account:

(i) the practical influence that can be exerted (rather than

the rights that can be enforced); and

(ii) any practice or pattern of behaviour affecting the

entity's financial or operating policies (whether or not it

involves a breach of an agreement or a breach of trust).

910C Meaning of

linked to a refusal or failure to give effect to a

determination made by AFCA

(1) An entity is

linked to a refusal or failure to give effect to a

determination made by AFCA

if:

(a) a complaint is made under the AFCA scheme; and

(b) AFCA makes a determination relating to the complaint; and

primary entity

) may have refused or failed to give effect to

the determination; and

Schedule 4

Banning orders

Part 1

Corporations amendments

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(d) AFCA gives particulars of the refusal or failure in accordance

with subsection 1052E(1); and

(e) the first-mentioned entity is the primary entity or is covered

by subsection (2) of this section.

(2) This subsection covers an entity if, at any time during the period

starting when AFCA makes the determination and ending when

AFCA so gives the particulars, the entity is:

(a) an officer of the primary entity; or

(b) if the primary entity is an individual--substantially or

significantly involved in the management of:

(i) a financial services business carried on by the primary

entity; or

(ii) credit activities (within the meaning of the

National

Consumer Credit Protection Act 2009

) engaged in by

the primary entity; or

the trustees of the trust.

6 Before subsection 920A(1)

Insert:

Making a banning order

7 Subsection 920A(1)

Omit "make a banning order against a person, by giving written notice

to the person,", substitute ", in writing, make one or more orders

(

banning orders

) against a person".

8 Paragraph 920A(1)(bb)

Before "an insolvent under administration", insert "a Chapter 5 body

corporate or".

9 Paragraphs 920A(1)(d) and (da)

Repeal the paragraphs, substitute:

(d) ASIC has reason to believe that the person is not a fit and

proper person to:

(i) provide one or more financial services; or

Banning orders

Schedule 4

Corporations amendments

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(ii) perform one or more functions as an officer of an entity

that carries on a financial services business; or

(iii) control an entity that carries on a financial services

business; or

(da) ASIC has reason to believe that the person is not adequately

trained, or is not competent, to:

(i) provide one or more financial services; or

(ii) perform one or more functions as an officer of an entity

that carries on a financial services business; or

(iii) control an entity that carries on a financial services

business; or

10 At the end of subsection 920A(1)

Add:

; or (j) the person has, at least twice, been linked to a refusal or

failure to give effect to a determination made by AFCA

relating to a complaint that relates to:

(i) a financial services business; or

(ii) credit activities (within the meaning of the

National

Consumer Credit Protection Act 2009

); or

(k) subsection (1C) applies to the person in relation to 2 or more

corporations.

Note:

To work out whether a person has been linked as described in

paragraph (j), see section 910C.

11 Subsection 920A(1A)

Repeal the subsection, substitute:

When a person is not a fit and proper person

(1A) For the purposes of paragraph (1)(d), ASIC must have regard to the

matters in section 913BB.

12 Before subsection 920A(1B)

Insert:

Schedule 4

Banning orders

Part 1

Corporations amendments

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

When a person contravenes a financial services law

13 After subsection 920A(1B)

Insert:

When a person has been an officer of a corporation unable to pay

its debts

(1C) This subsection applies to a person in relation to a corporation if,

within the last 7 years:

(a) the person was an officer of the corporation when the

corporation was:

(i) carrying on a financial services business; or

(ii) engaging in credit activities (within the meaning of the

National Consumer Credit Protection Act 2009

); and

(b) the corporation was wound up either:

(i) while the person was an officer of the corporation; or

(ii) within the 12 months after the person ceased to be an

officer of the corporation; and

(including that subsection as applied by section 526-35 of the

Corporations (Aboriginal and Torres Strait Islander) Act

2006

) about the corporation's inability to pay its debts.

Person to be given an opportunity to be heard

14 Subsection 920A(3)

Omit "the banning order", substitute "a banning order".

15 At the end of section 920A

Add:

Copy of banning order to be given to the person

(4) ASIC must give a copy of a banning order to the person against

whom it was made.

16 Section 920B (heading)

Repeal the heading, substitute:

Banning orders

Schedule 4

Corporations amendments

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

920B What a banning order prohibits

17 Subsections 920B(1) and (2)

Repeal the subsections, substitute:

(1) A banning order made against a person may specify that the person

is prohibited from doing one or more of the following:

(a) providing any financial services;

(b) providing specified financial services in specified

circumstances or capacities;

other entities, an entity that carries on a financial services

business;

(d) performing any function involved in the carrying on of a

financial services business (including as an officer, manager,

employee, contractor or in some other capacity);

(e) performing specified functions involved in the carrying on of

a financial services business.

(2) The banning order may specify that a particular prohibition

specified in the order applies against the person:

(a) if the sole ground for the banning order is because

paragraph 920A(1)(k) applies--for a specified period of up

to 5 years; or

(b) otherwise--either permanently or for a specified period.

Note:

This subsection applies separately to each prohibition specified in the

order.

18 Paragraph 921A(2)(a)

Repeal the paragraph, substitute:

(a) one or more orders disqualifying the person, permanently or

for a specified period, from doing one or more of the

following:

(i) providing any financial services;

(ii) providing specified financial services in specified

circumstances or capacities;

(iii) controlling, whether alone or in concert with one or

more other entities, an entity that carries on a financial

services business;

Schedule 4

Banning orders

Part 1

Corporations amendments

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

(iv) performing any function involved in the carrying on of a

financial services business (including as an officer,

manager, employee, contractor or in some other

capacity);

(v) performing specified functions involved in the carrying

on of a financial services business; or

19 Paragraph 1200G(6)(c)

Omit "under section 920A".

20 Paragraph 1317P(1)(e)

Repeal the paragraph, substitute:

(e) a banning order, or an order by the Court under section 921A

(about disqualification by the Court), has been made against

the person.

21 Paragraphs 1349(1)(j), (3)(h) and (4)(e)

Omit "under section 920A of this Act".

22 In the appropriate position in Chapter 10

Insert:

Part 10.40--Transitional provisions relating to

Schedule 4 to the Financial Sector Reform

(Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Act

2019

1666 Application--conduct etc. relevant to new banning and

disqualification orders

When making either of the following orders at or after the

commencement of Part 1 of Schedule 4 to the

Financial Sector

Reform (Hayne Royal Commission Response--Stronger Regulators

(2019 Measures)) Act 2019

(a) a banning order;

Banning orders

Schedule 4

Corporations amendments

Part 1

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(b) a disqualification order described in paragraph 921A(2)(a) of

this Act;

regard may be had to acts, omissions, states of affairs or matters

before, at or after that commencement.

1667 Transitional--existing banning and disqualification orders

(1) An order made under subsection 920A(1), that is in force

immediately before the commencement of Part 1 of Schedule 4 to

the

Financial Sector Reform (Hayne Royal Commission

Response--Stronger Regulators (2019 Measures)) Act 2019

continues in force (and may be dealt with) as if it had been made

under that subsection as amended by that Act.

(2) An order described in paragraph 921A(2)(a) that:

(a) was made under subsection 921A(2); and

(b) is in force immediately before the commencement of Part 1

of Schedule 4 to the

Financial Sector Reform (Hayne Royal

Commission Response--Stronger Regulators (2019

Measures)) Act 2019

;

continues in force (and may be dealt with) as if it had been made

under that subsection as amended by that Act.

(3) Section 920D applies to an order covered by subsection (1) of this

section as if the words "because of a change in any of the

circumstances based on which ASIC made the order" were omitted

from subsection 920D(1).

Schedule 4

Banning orders

Part 2

Consumer credit amendments

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

Part 2--Consumer credit amendments

National Consumer Credit Protection Act 2009

23 Subsection 5(1) (definition of

banning order

)

Repeal the definition, substitute:

banning order

means an order made under subsection 80(1).

24 Subsection 5(1)

Insert:

control

has the meaning given by section 16A.

25 After section 16

Insert:

16A Meaning of

control

(1)

Control

, of a body corporate, is:

(a) having the capacity to cast, or control the casting of, more

than one half of the maximum number of votes that might be

cast at a general meeting of the body corporate; or

(b) directly or indirectly holding more than one half of the issued

share capital of the body corporate (not including any part of

that issued share capital that carries no right to participate

beyond a specified amount in a distribution of either profits

or capital, and not including MCIs); or

corporate's board or governing body; or

(d) having the capacity to determine the outcome of decisions

about the body corporate's financial and operating policies,

taking into account:

(i) the practical influence that can be exerted (rather than

the rights that can be enforced); and

(ii) any practice or pattern of behaviour affecting the body

corporate's financial or operating policies (whether or

Banning orders

Schedule 4

Consumer credit amendments

Part 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

not it involves a breach of an agreement or a breach of

trust).

(2)

Control

, of a person other than a body corporate, is:

(a) having the capacity to control the composition of the person's

board or governing body (if any); or

(b) having the capacity to determine the outcome of decisions

about the person's financial and operating policies, taking

into account:

(i) the practical influence that can be exerted (rather than

the rights that can be enforced); and

(ii) any practice or pattern of behaviour affecting the

person's financial or operating policies (whether or not

it involves a breach of an agreement or a breach of

trust).

(3) For the purposes of paragraph (1)(b),

MCI

has the same meaning

as in the

Corporations Act 2001

, and

issued

has the same meaning

as in Chapter 7 of that Act.

26 Section 79

Repeal the section, substitute:

79 Guide to this Part

This Part is about banning or disqualifying persons from:

(a)

engaging in credit activities; or

(b)

controlling others who engage in credit activities; or

(c)

performing some or any functions involved in others

engaging in credit activities.

The bans are orders made by ASIC under Division 2.

The disqualifications are orders made by the court under

Division 3.

27 Before subsection 80(1)

Insert:

Schedule 4

Banning orders

Part 2

Consumer credit amendments

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

Making a banning order

28 Subsection 80(1)

Omit "make a banning order", substitute ", in writing, make one or

more orders (

banning orders

)".

29 Paragraph 80(1)(b)

Omit "for a person other than the trustees of a trust--".

30 Paragraph 80(1)(f)

Repeal the paragraph, substitute:

(f) if ASIC has reason to believe that the person is not a fit and

proper person to:

(i) engage in one or more credit activities; or

(ii) perform one or more functions as an officer (within the

meaning of the

Corporations Act 2001

) of another

person who engages in credit activities; or

(iii) control another person who engages in credit activities;

(fa) if ASIC has reason to believe that the person is not

adequately trained, or is not competent, to:

(i) engage in one or more credit activities; or

(ii) perform one or more functions as an officer (within the

meaning of the

Corporations Act 2001

) of another

person who engages in credit activities; or

(iii) control another person who engages in credit activities;

(fb) if the person has, at least twice, been linked to a refusal or

failure to give effect to a determination made by AFCA (as

defined in section 910C of the

Corporations Act 2001

)

relating to a complaint that relates to:

(i) credit activities; or

(ii) a financial services business (within the meaning of the

Corporations Act 2001

); or

(fc) if subsection (3) applies to the person in relation to 2 or more

corporations; or

Banning orders

Schedule 4

Consumer credit amendments

Part 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

31 Subsections 80(2) and (3)

Repeal the subsections, substitute:

When a person is not a fit and proper person

(2) For the purposes of paragraph (1)(f), ASIC must have regard to the

matters in section 37B.

When a person has been an officer of a corporation unable to pay

its debts

(3) This subsection applies to a person in relation to a corporation if,

within the last 7 years:

(a) the person was an officer (within the meaning of the

Corporations Act 2001

) of the corporation when the

corporation was:

(i) engaging in credit activities; or

(ii) carrying on a financial services business (within the

meaning of the

Corporations Act 2001

); and

(b) the corporation was wound up either:

(i) while the person was such an officer of the corporation;

(ii) within the 12 months after the person ceased to be such

an officer of the corporation; and

Corporations Act 2001

(including that subsection as applied

by section 526-35 of the

Corporations (Aboriginal and

Torres Strait Islander) Act 2006

) about the corporation's

inability to pay its debts.

Person to be given an opportunity to be heard

32 Paragraphs 80(5)(a) and (6)(a)

Omit "the banning order against the person", substitute "a banning

order against a person".

33 Before subsection 80(7)

Insert:

Schedule 4

Banning orders

Part 2

Consumer credit amendments

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

Copy of banning order to be given to the person

34 Subsection 80(7)

Omit "the banning order", substitute "a banning order".

35 Section 81 (heading)

Repeal the heading, substitute:

81 What a banning order prohibits

36 Subsections 81(1) and (2)

Repeal the subsections, substitute:

(1) A banning order made against a person may specify that the person

is prohibited from doing one or more of the following:

(a) engaging in any credit activities;

(b) engaging in specified credit activities in specified

circumstances or capacities;

other entities (as defined by section 64A of the

Corporations

Act 2001

), another person who engages in credit activities;

(d) performing any function involved in the engaging in of credit

activities (including as an officer (within the meaning of the

Corporations Act 2001

), manager, employee, contractor or in

some other capacity);

(e) performing specified functions involved in the engaging in of

credit activities.

(2) The banning order may specify that a particular prohibition

specified in the order applies against the person:

(a) if the sole ground for the banning order is because

paragraph 80(1)(fc) applies--for a specified period of up to 5

years; or

(b) otherwise--either permanently or for a specified period.

Note:

This subsection applies separately to each prohibition specified in the

order.

37 Subsection 86(1)

Omit "an order", substitute "one or more orders".

Banning orders

Schedule 4

Consumer credit amendments

Part 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

38 Paragraph 86(2)(a)

Repeal the paragraph, substitute:

(a) one or more orders disqualifying the person, permanently or

for a specified period, from doing one or more of the

following:

(i) engaging in any credit activities;

(ii) engaging in specified credit activities in specified

circumstances or capacities;

(iii) controlling, whether alone or in concert with one or

more other entities (as defined by section 64A of the

Corporations Act 2001

), another person who engages in

credit activities;

(iv) performing any function involved in the engaging in of

credit activities (including as an officer (within the

meaning of the

Corporations Act 2001

), manager,

employee, contractor or in some other capacity);

(v) performing specified functions involved in the engaging

in of credit activities; or

National Consumer Credit Protection (Transitional and

Consequential Provisions) Act 2009

39 In the appropriate position

Insert:

Schedule 4

Banning orders

Part 2

Consumer credit amendments

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

No. , 2019

Schedule 14--Application and transitional

provisions for Schedule 4 to the

Financial Sector Reform (Hayne Royal

Commission Response--Stronger

Regulators (2019 Measures)) Act 2019

1 Application

--conduct etc. relevant to new banning and

disqualification orders

When making either of the following orders at or after the

commencement of Part 2 of Schedule 4 to the

Financial Sector Reform

(Hayne Royal Commission Response--Stronger Regulators (2019

Measures)) Act 2019

(a) a banning order;

(b) a disqualification order described in paragraph 86(2)(a) of the

National Credit Act;

regard may be had to acts, omissions, states of affairs or matters before,

at or after that commencement.

2 Transitional

--existing banning and disqualification orders

(1)

An order made under subsection 80(1) of the National Credit Act, that

is in force immediately before the commencement of Part 2 of

Schedule 4 to the

Financial Sector Reform (Hayne Royal Commission

Response--Stronger Regulators (2019 Measures)) Act 2019

, continues

in force (and may be dealt with) as if it had been made under that

subsection as amended by that Part.

(2)

An order described in paragraph 86(2)(a) of the National Credit Act

that:

(a) was made under subsection 86(2) of that Act; and

(b) is in force immediately before the commencement of Part 2

of Schedule 4 to the

Financial Sector Reform (Hayne Royal

Commission Response--Stronger Regulators (2019

Measures)) Act 2019

;

continues in force (and may be dealt with) as if it had been made under

that subsection as amended by that Part.

Banning orders

Schedule 4

Consumer credit amendments

Part 2

No. , 2019

Financial Sector Reform (Hayne Royal Commission Response--

Stronger Regulators (2019 Measures)) Bill 2019

(3)

Section 83 of the National Credit Act applies to an order covered by

subitem (1) as if the words "because of a change in any of the

circumstances based on which ASIC made the order" were omitted

from subsection 83(1) of that Act.

Commonwealth of Australia Bills

FINANCIAL SECTOR REFORM (HAYNE ROYAL COMMISSION RESPONSE-STRONGER REGULATORS (2019 MEASURES)) BILL 2019