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Bill
- Part 1—Preliminary
- Part 2—Interpretation
- Part 1—Introduction
- Part 2—Obligations of accountable entities and accountable persons
- Part 3—Accountability obligations
- Part 4—Key personnel obligations
- Part 5—Deferred remuneration obligations
- Part 6—Notification obligations
- Part 1—Introduction
- Part 2—The Regulator
- Part 3—Registration and disqualification of accountable persons
- Part 4—Regulatory powers and enforcement
- Part 5—Review of decisions
- Part 6—Miscellaneous
2022-2023
The Parliament of the
Commonwealth of Australia
Presented and read a first time
Financial Accountability Regime Bill 2023
No. , 2023
(Treasury)
Contents
Chapter 1—Introduction 2
Part 1—Preliminary 2
1............ Short title............................................................................................ 2
2............ Commencement.................................................................................. 2
3............ Objects of this Act.............................................................................. 2
4............ Simplified outline of this Act............................................................. 3
5............ Act binds the Crown........................................................................... 4
6............ Extension to external Territories........................................................ 4
7............ Extra-territorial application................................................................ 4
Part 2—Interpretation 5
8............ Definitions.......................................................................................... 5
9............ Meaning of accountable entity ........................................................... 9
10.......... Meaning of accountable person ....................................................... 10
11.......... When a person is not an accountable person ................................... 13
12.......... Meaning of significant related entity ............................................... 13
13.......... Meaning of constitutionally covered body ....................................... 15
Chapter 2—Obligations under the Financial Accountability Regime 17
Part 1—Introduction 17
14.......... Simplified outline of this Chapter.................................................... 17
Part 2—Obligations of accountable entities and accountable persons 19
Division 1—Accountable entities 19
15.......... Obligations of accountable entities.................................................. 19
16.......... Minister may exempt accountable entities....................................... 19
17.......... Inconsistency with corresponding foreign laws............................... 20
Division 2—Accountable persons 22
18.......... Obligations of accountable persons.................................................. 22
19.......... Inconsistency with corresponding foreign laws............................... 22
Part 3—Accountability obligations 24
20.......... The accountability obligations of an accountable entity.................. 24
21.......... The accountability obligations of an accountable person................ 24
22.......... Taking reasonable steps.................................................................... 26
Part 4—Key personnel obligations 27
23.......... The key personnel obligations of an accountable entity.................. 27
24.......... People prohibited from being an accountable person...................... 28
Part 5—Deferred remuneration obligations 30
25.......... The deferred remuneration obligations of an accountable entity..... 30
26.......... Meaning of variable remuneration .................................................. 31
27.......... Minimum amount of variable remuneration to be deferred............. 32
28.......... Minimum deferral period for variable remuneration....................... 34
29.......... Exemption for small amounts of variable remuneration.................. 37
30.......... Exemption for variable remuneration payable for temporary performance 37
Part 6—Notification obligations 38
31.......... The notification obligations of an accountable entity...................... 38
32.......... Events for which the Regulator must be notified............................. 40
33.......... Accountability statements................................................................ 41
34.......... Accountability map.......................................................................... 41
Chapter 3—Administration 42
Part 1—Introduction 42
35.......... Simplified outline of this Chapter.................................................... 42
Part 2—The Regulator 43
Division 1—Arrangements for administration 43
36.......... Administration of this Act................................................................ 43
37.......... Arrangement for administration....................................................... 45
38.......... Agreement about exercise of powers............................................... 45
Division 2—Information sharing 47
39.......... Disclosure of information and documents between APRA and ASIC 47
Part 3—Registration and disqualification of accountable persons 49
Division 1—Registration of accountable persons 49
40.......... Register of accountable persons....................................................... 49
41.......... Registration of a person as an accountable person........................... 50
Division 2—Disqualification of accountable persons 52
42.......... Regulator may disqualify an accountable person............................. 52
43.......... Regulator may vary or revoke a disqualification............................. 53
44.......... Allowing a person disqualified by the Regulator to act as an accountable person 54
Part 4—Regulatory powers and enforcement 55
Division 1—Investigations 55
45.......... Regulator may appoint an investigator............................................. 55
46.......... Requirement to assist investigator.................................................... 56
47.......... Investigator may require production of books etc............................ 56
48.......... Concealing books, accounts or documents relevant to investigation 57
Division 2—Examinations 58
49.......... Notice requiring appearance for examination.................................. 58
50.......... Conduct of examinations.................................................................. 58
51.......... Who may be present at examinations............................................... 59
52.......... Record of examination..................................................................... 60
53.......... Offences............................................................................................ 60
Division 3—Evidentiary use of certain material 61
54.......... Statements made at an examination—proceedings against examinee 61
55.......... Statements made at an examination—other proceedings................. 62
56.......... Weight of evidence under section 55............................................... 63
57.......... Objection to admission of statements made at examination............ 64
58.......... Copies of, or extracts from, certain books, accounts and documents 65
59.......... Admissibility of investigation report................................................ 66
60.......... Exceptions to admissibility of investigation report.......................... 66
61.......... Material otherwise admissible.......................................................... 67
Division 4—Requesting information 68
62.......... Regulator may request information.................................................. 68
63.......... Failing to give information............................................................... 70
Division 5—Regulator’s power to issue directions 71
Subdivision A—Kinds of directions 71
64.......... Direction dealing with non-compliance........................................... 71
65.......... Direction to reallocate responsibilities............................................. 73
Subdivision B—Non-compliance with directions 75
66.......... Offence provision for non-compliance with a direction.................. 75
Subdivision C—Secrecy and disclosure provisions relating to directions 76
67.......... Regulator may determine that a direction is covered by secrecy provision 76
68.......... Secrecy relating to directions........................................................... 77
69.......... Disclosure of publicly available information................................... 78
70.......... Disclosure allowed by the Regulator................................................ 78
71.......... Disclosure for the purpose of seeking review or legal advice.......... 79
72.......... Disclosure under the APRA Act...................................................... 80
73.......... Disclosure under the ASIC Act........................................................ 81
74.......... Disclosure in circumstances set out in the Minister rules................ 81
75.......... Disclosure for purpose...................................................................... 82
76.......... Exceptions operate independently.................................................... 82
Subdivision D—Other provisions relating to directions 82
77.......... Direction not grounds for denial of obligations............................... 82
78.......... Information to the Minister about certain directions........................ 84
79.......... Relationship with other laws............................................................ 84
Division 6—Civil penalties 85
80.......... Civil penalty provision for non-compliance with obligations.......... 85
81.......... Ancillary contravention of civil penalty provisions......................... 85
82.......... Civil penalty provisions—enforcement............................................ 86
83.......... Civil penalty provisions—amount of penalty.................................. 87
Division 7—Enforceable undertakings 89
84.......... Enforceable undertakings................................................................. 89
Division 8—Injunctions 91
85.......... Injunctions........................................................................................ 91
Division 9—Miscellaneous 92
86.......... Physical elements of offences.......................................................... 92
87.......... Contravening an offence provision or a civil penalty provision...... 92
88.......... Self-incrimination............................................................................. 92
89.......... Legal professional privilege............................................................. 93
90.......... Powers of Court relating to non-compliance with this Act.............. 94
Part 5—Review of decisions 95
91.......... Reviewable decisions....................................................................... 95
92.......... Notice of decisions and review rights.............................................. 98
93.......... Affected person may request reconsideration of reviewable decision 99
94.......... Reconsideration of reviewable decision........................................... 99
95.......... Review by the Administrative Appeals Tribunal........................... 100
Part 6—Miscellaneous 102
96.......... Disclosure for the purpose of seeking review or legal advice........ 102
97.......... Indemnifying accountable entities.................................................. 102
98.......... Causes of action not created........................................................... 103
99.......... Compensation for acquisition of property...................................... 103
100........ Conduct of directors, employees and agents.................................. 103
101........ Protection from liability—general.................................................. 105
102........ Protection from liability—directions and secrecy.......................... 105
103........ Protection from liability—provisions do not limit each other....... 106
104........ Minister rules.................................................................................. 106
105........ Regulator rules............................................................................... 107
A Bill for an Act to provide for a strengthened accountability framework for financial entities in the banking, insurance and superannuation industries, and for related purposes
The Parliament of Australia enacts:
Chapter 1 — Introduction
Chapter 2 — Obligations under the Financial Accountability Regime
Chapter 3 — Administration