Senate

Supplementary Explanatory Memorandum

(Circulated by authority of the Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP)

Glossary

This Supplementary Explanatory Memorandum uses the following abbreviations and acronyms.

General outline and financial impact

Financial services compensation scheme of last resort - Parliamentary Amendments

Outline

The Parliamentary amendments to the Bill facilitate the removal of the financial services CSLR from the Bill. The policy intention for this change is to enable the Government to consult further on the implementation of the scheme without holding up the other measures in the Bill.

Date of effect

None.

Financial impact

The financial impacts of establishing the CSLR were outlined in the original Explanatory Memorandum to the Bill.

Human rights implications

The Parliamentary amendments do not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 2.

Chapter 1: Financial services compensation scheme of last resort - Parliamentary Amendments

Outline of chapter

1.1 The Parliamentary amendments to the Bill remove the framework for the CSLR.

Detailed explanation of amendments

1.2 Amendment 1 amends the title, so it no longer refers to establishing the CSLR. [Amendment 1]

1.3 Amendment 2 removes table item 5 from clause 2 to the Bill, so it no longer includes commencement information for the CSLR. [Amendment 2]

1.4 Amendment 3 removes Schedule 3 to the Bill. Schedule 3 to the Bill would have made amendments to the Corporations Act 2001, Australian Securities and Investments Commission Act 2001 and the National Consumer Credit Protection Act 2009 to facilitate the CSLR framework. [Amendment 3]

Chapter 2: Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Financial Sector Reform Bill 2022

Overview

2.1 The Parliamentary amendments are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

2.2 The amendments facilitate the removal of the CSLR framework from the Bill.

Human rights implications

2.3 The Parliamentary amendments do not engage any of the applicable rights or freedoms.

Conclusion

2.4 The Parliamentary amendments are compatible with human rights as it does not raise any human rights issues.

2.5 The Bill as amended is compatible with human rights as provided for in the Explanatory Memorandum to the Bill.