Commonwealth Numbered Regulations - Explanatory Statements

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INSURANCE ACQUISITIONS AND TAKEOVERS REGULATIONS (AMENDMENT) 1998 NO. 79

STATUTORY RULES NO. 79

Issued by the authority of the Assistant Treasurer

Insurance Acquisitions and Takeovers Act 1991

Insurance Acquisitions and Takeovers Regulations (Amendment)

The Insurance Acquisitions and Takeovers Act 1991 (the Act) provides for the compulsory notification of proposals to acquire interests in Australian registered insurance and related companies. The objective of the Act is to protect the public interest by: ensuring that the affairs of Australian registered insurance companies are conducted in a prudential manner; preventing unsuitable persons from being in a position of influence over these companies; and preventing undue concentration in the insurance industry.

Section 82 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.

The purpose of the proposed Regulations is to correct a drafting error in Regulation 2 of the Principal Regulations. Regulation 2 prescribes financial sector supervisory agencies, law enforcement agencies and overseas financial sector supervisory agencies for the purposes of section 75 of the Act.

Section 75 of the Act provides for secrecy in respect of information acquired for purposes of the Act. Section 75 allows that information may be disclosed to prescribed financial sector supervisory agencies, law enforcement agencies and overseas financial sector supervisory agencies. Section 75 and the Principal Regulations are aimed at facilitating the ability of the Insurance and Superannuation Commission to act quickly to exchange information to prevent and/or manage a crisis situation within financial conglomerates.

Regulations 1 and 2 are self explanatory. Regulation 3 amends Regulation 2 of the Principal Regulations to correct a drafting error. The amendment omits the reference to the 'Queensland Motor Accident Authority' and inserts a reference to the 'Motor Accident Insurance Commission, Queensland'. The drafting error was inserted into Regulation 2 of the Principal Regulations by Statutory Rule Number 236 of 1997.

The Regulations commence on gazettal.