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Financial Sector Legislation Amendment (Review of Prudential Decisions) Bill 2007

Schedule 4 Review of decisions

Part 1 Amendments commencing on Royal Assent

Banking Act 1959

1  At the end of section 9

Add:

             (9)  Part VI applies to the following decisions under this section:

                     (a)  a decision to refuse an application under this section;

                     (b)  a decision to impose conditions, or additional conditions, on an authority;

                     (c)  a decision to vary conditions imposed on an authority.

2  At the end of section 9A

Add:

             (8)  Part VI applies to a decision under this section to refuse to revoke a body corporate’s section 9 authority.

3  At the end of section 11

Add:

             (5)  Part VI applies to the following decisions under this section:

                     (a)  a refusal to determine that one or more provisions of this Act do not apply to a particular person;

                     (b)  a variation or revocation of an order under this section that applies to a particular person.

4  At the end of section 11AA

Add:

             (8)  Part VI applies to the following decisions under this section:

                     (a)  a decision to refuse an application under this section;

                     (b)  a decision to impose conditions, or additional conditions, on an authority;

                     (c)  a decision to vary conditions imposed on an authority.

5  At the end of section 11AB

Add:

             (8)  Part VI applies to a decision under this section to refuse to revoke a NOHC authority granted to a body corporate.

6  Before subsection 11AF(8)

Insert:

          (7C)  Part VI applies to the following decisions under this section:

                     (a)  a decision to determine a standard referred to in paragraph (1)(d);

                     (b)  a decision to vary such a standard.

7  After subsection 11CA(5)

Insert:

          (5A)  Part VI applies to a decision to give a direction under subsection (1) as a result of the ground referred to in paragraph (1)(a), (b), (c), (d) or (e).

8  Section 11CB

Before “APRA may”, insert “(1)”.

9  At the end of section 11CB

Add:

             (2)  Part VI applies to a refusal under this section to certify an industry support contract.

10  After subsection 11CC(3)

Insert:

          (3A)  APRA may vary the direction if, at the time of the variation, it considers that the variation is necessary and appropriate.

11  At the end of section 11CC

Add:

             (7)  Part VI applies to the following decisions made under this section:

                     (a)  a decision to give a direction;

                     (b)  a decision to vary a direction;

                     (c)  a revocation of the certification of an industry support contract.

12  Subsection 51C(4)

Repeal the subsection.

13  After subsection 66(2B)

Insert:

          (2C)  Part VI applies to the following decisions made under this section:

                     (a)  a decision to refuse consent to a particular person;

                     (b)  a decision to impose conditions, or additional conditions, on a consent that applies to a particular person;

                     (c)  a decision to vary conditions imposed on a consent that applies to a particular person;

                     (d)  a decision to revoke a consent that applies to a particular person.

14  At the end of section 67

Add:

             (5)  Part VI applies to the following decisions made under this section:

                     (a)  a decision to refuse consent;

                     (b)  a decision to impose conditions, or additional conditions, on a consent;

                     (c)  a decision to vary conditions imposed on a consent;

                     (d)  a decision to revoke a consent.

Financial Sector (Collection of Data) Act 2001

15  After Part 3

Insert:

Part 3A Review of decisions

   

25A   Notice of reviewable decision

             (1)  If APRA makes a reviewable decision (the original decision ), then APRA must give a notice in writing of the original decision to the person in relation to whom the decision is made.

             (2)  The notice must include a statement to the effect that:

                     (a)  the person may, if dissatisfied with the original decision, seek a reconsideration of that decision by APRA in accordance with sections 25B and 25C; and

                     (b)  a person whose interests are affected by the original decision may, subject to the Administrative Appeals Tribunal Act 1975 , if dissatisfied with a decision made by APRA on that reconsideration confirming or varying the original decision, make application to the Administrative Appeals Tribunal for a review of the decision so confirmed or varied.

25B   Request for review of decisions

             (1)  A person in relation to whom a reviewable decision is made, may, if dissatisfied with the decision, request APRA to reconsider the decision.

             (2)  The request must:

                     (a)  be made by notice in writing; and

                     (b)  be given to APRA within:

                              (i)  the period of 21 days after the day on which the decision first comes to the notice of the person; or

                             (ii)  within such further period as APRA allows; and

                     (c)  set out the reasons for making the request.

25C   Review of decision

             (1)  On receiving the request, APRA:

                     (a)  must reconsider the decision; and

                     (b)  may, in such manner as APRA thinks fit:

                              (i)  confirm the decision; or

                             (ii)  revoke the decision; or

                            (iii)  vary the decision.

             (2)  If APRA does not confirm, revoke or vary a decision within the period of 21 days after receiving the request to reconsider the decision, APRA is, at the end of that period, taken to have confirmed the decision under subsection (1).

             (3)  If APRA confirms, revokes or varies a decision (including because of the application of subsection (2)) by the end of the period referred to in subsection (2), APRA must serve a notice on the person who made the request. The notice must:

                     (a)  inform him or her of the result of APRA’s reconsideration of the decision; and

                     (b)  set out the findings on material questions of fact; and

                     (c)  refer to the evidence or other material on which those findings were based; and

                     (d)  give APRA’s reasons for confirming, revoking or varying the decision; and

                     (e)  include a statement that:

                              (i)  the person may, if dissatisfied with the decision, seek a reconsideration of the decision; and

                             (ii)  a person whose interests are affected by the decision may, subject to the Administrative Appeals Tribunal Act 1975 , if dissatisfied with the decision, apply to the Administrative Appeals Tribunal for a review of the decision so confirmed or varied.

             (4)  Any failure to comply with the requirements of subsection (3) in relation to a decision does not affect the validity of the decision.

25D   Applications to Administrative Appeals Tribunal

             (1)  Applications may be made to the Administrative Appeals Tribunal for review of decisions of APRA that have been confirmed or varied under section 25C.

             (2)  If a decision is, under subsection 25C(2), taken to be confirmed, section 29 of the Administrative Appeals Tribunal Act 1975 applies as if the prescribed time for making an application for review of the decision were the period:

                     (a)  beginning on the day on which the decision is taken to be confirmed; and

                     (b)  ending 28 days later.

             (3)  If a person makes a request under section 25B in respect of a reviewable decision, section 41 of the Administrative Appeals Tribunal Act 1975 applies as if the making of the request were the making of an application to the Administrative Appeals Tribunal for a review of that decision.

             (4)  For the purposes of:

                     (a)  a review of a decision of APRA that has been confirmed or varied under section 25C; or

                     (b)  a request under subsection 41(2) of the Administrative Appeals Tribunal Act 1975 in respect of such a decision;

a non-presidential member of the Administrative Appeals Tribunal must not sit as a member of the Administrative Appeals Tribunal if he or she is a director or employee of:

                     (c)  an entity of any kind carrying on (whether in Australia or elsewhere) insurance business (within the meaning of the Insurance Act 1973 ) or life insurance business (within the meaning of the Life Insurance Act 1995 ); or

                     (d)  if an entity referred to in paragraph (c) is a body corporate—a body corporate that is related to it.

             (5)  The question whether 2 bodies corporate are related to each other for the purposes of paragraph (4)(d) is to be determined in the same way as that question is determined for the purposes of the Corporations Act 2001 .

             (6)  An order must not be made under subsection 41(2) of the Administrative Appeals Tribunal Act 1975 in respect of a decision except by the Administrative Appeals Tribunal.

16  Section 31

Insert:

decision , in Part 3A, has the same meaning as in the Administrative Appeals Tribunal Act 1975 .

17  Section 31

Insert:

reviewable decision means any of the following decisions:

                     (a)  a decision not to exempt an organisation under paragraph 7(2)(j);

                     (b)  a decision not to allow a longer period under subsection 9(3);

                     (c)  a decision to include (including by transfer) a registered entity in a particular category under section 11;

                     (d)  a decision under section 13 to determine a reporting standard for a particular financial sector entity;

                     (e)  a decision to vary a reporting standard determined under section 13 for a particular financial sector entity.

Insurance Act 1973

18  At the end of section 7

Add:

             (5)  Part VI applies to the following decisions made under this section:

                     (a)  a refusal to determine that one or more provisions of this Act do not apply to a particular person;

                     (b)  a decision to impose conditions on, or specify a period in, a determination made under this section in relation to a particular person;

                     (c)  a decision to vary or revoke a determination made under this section in relation to a particular person.

19  At the end of section 13

Add:

             (6)  Part VI applies to the following decisions made under this section:

                     (a)  a decision to impose conditions, or additional conditions, on an insurer’s authorisation under section 12;

                     (b)  a decision to vary conditions imposed on an insurer’s authorisation under section 12.

20  At the end of section 15

Add:

             (7)  Part VI applies to a decision to revoke a general insurer’s authorisation under section 12.

21  At the end of section 17

Add:

           (10)  Part VI applies to the following decisions made under this section:

                     (a)  a decision to give a direction under subsection (1);

                     (b)  a refusal to approve a proposed assignment under subsection (4);

                     (c)  a decision to impose conditions on an approval.

22  At the end of section 19

Add:

             (5)  Part VI applies to the following decisions made under this section:

                     (a)  a decision to impose conditions, or additional conditions, on a NOHC authorisation;

                     (b)  a decision to vary conditions imposed on a NOHC authorisation.

23  At the end of section 21

Add:

             (7)  Part VI applies to a decision to revoke a NOHC authorisation.

24  At the end of section 49H

Add:

             (5)  Part VI applies to a decision by APRA under subsection (3) or (4) to confirm or vary a delegate’s decision.

25  Subsection 63(14)

Repeal the subsection.

26  At the end of section 116A

Add:

             (7)  Part VI applies to a decision by APRA under subsection (5) or (6) to determine an amount or to vary such a determination.

Life Insurance Act 1995

27  Subsection 236(1) (definition of reviewable decision )

Omit “, subject to subsection (1A),”.

28  Subsection 236(1) (paragraphs (ca) and (cb) of the definition of reviewable decision )

Repeal the paragraphs, substitute:

                    (ca)  a determination under subsection 16C(2);

                   (cb)  a variation or revocation, under subsection 16C(3), of a determination under subsection 16C(2);

                    (cc)  a decision under section 16E;

                   (cd)  a refusal to give an approval under subsection 16L(3) or 16Q(3);

                    (ce)  a decision under subsection 16R(2) to give a notice;

                    (cf)  a determination of an amendment, or a refusal to approve an amendment, under subsection 16R(4);

                    (cg)  a refusal to give an approval under subsection 16U(3);

                   (ch)  a decision under subsection 16V(2) to give a notice;

                    (ci)  a refusal to approve consequential amendments under subsection 16V(4);

                    (cj)  a determination of consequential amendments under subsection 16V(5);

                   (ck)  a refusal to register a company under section 21;

29  Subsection 236(1) (after paragraph (g) of the definition of reviewable decision )

Insert:

                    (ga)  a refusal to cancel the registration of a company under section 27;

30  Subsection 236(1) (after paragraph (h) of the definition of reviewable decision )

                   (ha)  a refusal to give an approval under subsection 40(1);

                   (hb)  a decision to impose conditions on an approval granted under subsection 40(1);

                   (hc)  a refusal to give an approval under paragraph 43(3)(c);

                   (hd)  a refusal to give an approval under paragraph 48(8)(b);

31  Subsection 236(1) (paragraphs (i) and (j) of the definition of reviewable decision )

Repeal the paragraphs.

32  Subsection 236(1) (after paragraph (l) of the definition of reviewable decision )

Insert:

                    (la)  a refusal to give an approval under paragraph 62(1)(c);

33  Subsection 236(1) (after paragraph (zn) of the definition of reviewable decision )

Insert:

                  (zna)  a refusal under section 208 to suspend or vary a life company’s obligation to make payments;

34  Subsection 236(1) (at the end of the definition of reviewable decision )

Add:

                 ; (zq)  a decision to give a direction under section 230B as a result of the ground referred to in paragraph 230B(1)(a), (b), (c) or (d).

35  Subsection 236(1A)

Repeal the subsection.

36  Subsection 237(5)

Repeal the subsection.

Superannuation Industry (Supervision) Act 1993

37  Subsection 10(1) (after paragraph (dl) of the definition of reviewable decision )

Insert:

                  (dla)  a decision of APRA to give a direction under subsection 29HB(3); or

38  Subsection 10(1) (after paragraph (dn) of the definition of reviewable decision )

Insert:

                   (do)  a decision of APRA to give a direction under subsection 29PB(3); or

39  Subsection 10(1) (after paragraph (fa) of the definition of reviewable decision )

Insert:

                    (fb)  a refusal of the Regulator to give an approval under subparagraph 62(1)(b)(v); or

40  Subsection 10(1) (before paragraph (u) of the definition of reviewable decision )

Insert:

                   (taa)  a decision of the Regulator to suspend or remove a trustee of a superannuation entity under section 133; or

41  Subsection 344(11)

Repeal the subsection.

42  Application

The amendments made by this Part apply to decisions made on or after the day on which this Part commences.



 

Part 2 Amendments contingent on other Acts

Financial Sector Legislation Amendment (Simplifying Regulation and Review) Act 2007

43  Item 126 of Schedule 1

Repeal the item, substitute:

126  Subsection 236(1) (after paragraph (zo) of the definition of reviewable decision )

Insert:

                   (zp)  a decision under section 230A to make, vary or revoke a standard referred to in paragraph 230A(1)(c);

44  Items 227 and 230 of Schedule 1

Repeal the items.

Insurance Act 1973

45  At the end of section 32

Add:

             (7)  Part VI applies to a decision to determine, vary or revoke a standard referred to in paragraph (1)(e).

Life Insurance Act 1995

46  Subsection 236(1) (paragraphs (m) to (t) of the definition of reviewable decision )

Repeal the paragraphs.

47  Subsection 236(1) (paragraphs (m) and (n) of the definition of reviewable decision )

Repeal the paragraphs.