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Financial Sector Reform (Hayne Royal Commission Response) Bill 2020

2019-2020

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

As passed by both Houses

 

 

 

 

Financial Sector Reform (Hayne Royal Commission Response) Bill 2020

 

No.      , 2020

 

 

 

 

 

A Bill for an Act to amend the law in relation to the financial sector, and for related purposes

   

   



Contents

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

2............ Commencement................................................................................... 1

3............ Schedules............................................................................................ 3

Schedule 1—Enforceable code provisions                                                               4

Corporations Act 2001                                                                                                4

National Consumer Credit Protection Act 2009                                                  10

Schedule 2—Insurer avoidance of life insurance contracts, and duty to take reasonable care not to make a misrepresentation                                                                                15

Part 1—Insurer avoidance of life insurance contracts                                 15

Insurance Contracts Act 1984                                                                                 15

Part 2—Duty to take reasonable care not to make a misrepresentation 17

Insurance Contracts Act 1984                                                                                 17

Schedule 3—Deferred sales model for add-on insurance                             26

Australian Securities and Investments Commission Act 2001                           26

Corporations Act 2001                                                                                              41

Schedule 4—Caps on commissions                                                                             43

Australian Securities and Investments Commission Act 2001                           43

National Consumer Credit Protection Act 2009                                                  50

Schedule 5—Hawking of financial products                                                        51

Part 1—Main amendments                                                                                        51

Corporations Act 2001                                                                                              51

Part 2—Other amendments                                                                                       56

Competition and Consumer Act 2010                                                                    56

Corporations Act 2001                                                                                              56

Schedule 6—Use of terms “insurance” and “insurer”                                   57

Insurance Act 1973                                                                                                    57

Schedule 7—Claims handling and settling services                                          61

Corporations Act 2001                                                                                              61

Schedule 8—Trustees of registrable superannuation entities should have no other duty              78

Superannuation Industry (Supervision) Act 1993                                               78

Schedule 9—Adjustment of APRA and ASIC’s roles in superannuation               79

Part 1—Adjustments relating to industry supervision                                 79

Superannuation Industry (Supervision) Act 1993                                               79

Part 2—Adjustments relating to financial services                                       96

Australian Securities and Investments Commission Act 2001                           96

Corporations Act 2001                                                                                              97

Superannuation Industry (Supervision) Act 1993                                             105

Schedule 10—Reference Checking and Information Sharing Protocol 107

Corporations Act 2001                                                                                            107

National Consumer Credit Protection Act 2009                                                110

National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009      112

Schedule 11—Breach reporting and remediation                                           114

Corporations Act 2001                                                                                            114

National Consumer Credit Protection Act 2009                                                129

National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009      141

Schedule 12—Statutory obligation to cooperate and formalising ASIC meeting procedures      143

Part 1—Cooperation obligation                                                                            143

Australian Prudential Regulation Authority Act 1998                                     143

Australian Securities and Investments Commission Act 2001                         143

Part 2—Financial regulator information                                                           145

Australian Prudential Regulation Authority Act 1998                                     145

Australian Securities and Investments Commission Act 2001                         148

Insurance Act 1973                                                                                                  151

Life Insurance Act 1995                                                                                          151

Part 3—ASIC meeting procedures                                                                      152

Australian Securities and Investments Commission Act 2001                         152

 

 



A Bill for an Act to amend the law in relation to the financial sector, and for related purposes

The Parliament of Australia enacts:

1   Short title

                   This Act is the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 .

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.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

 

2.  Schedule 1

The later of:

(a) the day after this Act receives the Royal Assent; and

(b) 1 January 2021.

 

3.  Schedule 2, Part 1

The later of:

(a) the day after this Act receives the Royal Assent; and

(b) 1 January 2021.

 

4.  Schedule 2, Part 2

Immediately after the commencement of the provisions covered by table item 3.

 

5.  Schedule 3

Immediately after the commencement of the provisions covered by table item 7.

 

6.  Schedule 4

The later of:

(a) the day after this Act receives the Royal Assent; and

(b) 1 January 2021.

 

7.  Schedule 5

The later of:

(a) the day after this Act receives the Royal Assent; and

(b) 5 October 2021.

 

8.  Schedules 6 and 7

The later of:

(a) the day after this Act receives the Royal Assent; and

(b) 1 January 2021.

 

9.  Schedule 8

The later of:

(a) the day after this Act receives the Royal Assent; and

(b) 1 July 2021.

 

10.  Schedule 9

The later of:

(a) the day after this Act receives the Royal Assent; and

(b) 1 January 2021.

 

11.  Schedules 10 and 11

1 October 2021.

1 October 2021

12.  Schedule 12

The later of:

(a) the day after this Act receives the Royal Assent; and

(b) 1 January 2021.

 

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.