Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 (7 of 2017)
Schedule 1 Amendments
Part 1 Amendments
Corporations Act 2001
12 After Division 8 of Part 7.6
Insert:
Division 8A - Professional standards for relevant providers
Subdivision A - Education and training standards
921B Meaning of education and training standards
(1) This section sets out the education and training standards for a person who is, or is to be, a relevant provider.
Conditions for relevant providers
(2) The first standard is that:
(a) the person has completed a bachelor or higher degree, or equivalent qualification, approved by the standards body under section 921U; or
(b) both of the following conditions are satisfied:
(i) the person has completed a foreign qualification;
(ii) the standards body has approved the foreign qualification under section 921V.
(3) The second standard is that the person has passed an exam approved by the standards body.
(4) The third standard is that the person has undertaken at least 1 year of work and training that meets the requirements set by the standards body.
Note: A relevant provider who is undertaking work and training in accordance with this subsection is a provisional relevant provider (see the definition of provisional relevant provider in section 910A). For rules relating to provisional relevant providers, see Subdivision C.
Continuing standard for relevant providers
(5) The fourth standard is that the person meets the requirements for continuing professional development set by the standards body.
Note: A provisional relevant provider is not required to meet this standard (see section 921D).
921C Limitation on authorisation to provide personal advice unless conditions met
Financial services licensees
(1) ASIC must not grant an applicant an Australian financial services licence that covers the provision of personal advice to retail clients in relation to relevant financial products if:
(a) the applicant is an individual; and
(b) the applicant has not met any one or more of the education and training standards in subsections 921B(2) to (4).
Note: Subsections 921B(2) to (4) set out the conditions for education and training for relevant providers.
Authorised representatives
(2) A financial services licensee must not, under section 916A, give a person a written notice authorising the person to provide personal advice to retail clients, on behalf of the licensee, in relation to relevant financial products if:
(a) the person is an individual; and
(b) either or both of the following subparagraphs apply:
(i) the person has not met either or both of the education and training standards in subsections 921B(2) and (3);
(ii) the person has not met the education and training standard in subsection 921B(4), and is not undertaking work and training in accordance with that subsection.
Sub-authorisations
(3) An authorised representative of a financial services licensee must not, under subsection 916B(3), give an individual a written notice authorising that individual to provide personal advice to retail clients, on behalf of the licensee, in relation to relevant financial products if either or both of the following paragraphs apply:
(a) the individual has not met either or both of the education and training standards in subsections 921B(2) and (3);
(b) the individual has not met the education and training standard in subsection 921B(4), and is not undertaking work and training in accordance with that subsection.
Employees and directors
(4) A financial services licensee must not authorise an employee or director of the licensee, or of a related body corporate of the licensee, to provide personal advice to retail clients, on behalf of the licensee, in relation to relevant financial products if either or both of the following paragraphs apply:
(a) the employee or director has not met either or both of the education and training standards in subsections 921B(2) and (3);
(b) the employee or director has not met the education and training standard in subsection 921B(4), and is not undertaking work and training in accordance with that subsection.
Exemption in relation to time-sharing schemes
(5) This section does not apply in relation to a person who is to provide personal advice to retail clients in relation to relevant financial products if the only relevant financial product in relation to which the person is to provide personal advice to retail clients is a time-sharing scheme.
921D Relevant providers to meet continuing professional development standard
(1) A relevant provider must comply with subsection 921B(5):
(a) if the relevant provider is a financial services licensee - during the licensee's CPD year; or
(b) if the relevant provider is authorised to provide personal advice to retail clients, on behalf of a financial services licensee, in relation to relevant financial products - during the licensee's CPD year.
Note 1: Subsection 921B(5) requires a relevant provider to meet the continuing professional development standard.
Note 2: Section 922HB requires a notice to be given at the end of a financial services licensee's CPD year if a relevant provider has not complied with this section during that year.
Exemptions
(2) Subsection (1) does not apply in relation to a person if:
(a) the person is a provisional relevant provider; or
(b) the only relevant financial product in relation to which the person provides personal advice to retail clients is a time-sharing scheme.
Subdivision B - Ethical standards
921E Relevant providers to comply with the Code of Ethics
A relevant provider must comply with the Code of Ethics.
Note: A failure to comply with the Code of Ethics must be notified under section 922HD.
Subdivision C - Provisional relevant providers
921F Requirements relating to provisional relevant providers
(1) This section sets out the requirements in relation to a person who is a provisional relevant provider.
Meaning of supervisor
(2) A supervisor of a provisional relevant provider is an individual who:
(a) has supervisory responsibility for the provisional relevant provider; and
(b) is a relevant provider; and
(c) is not a provisional relevant provider; and
(d) is not a limited-service time-sharing adviser.
Role of supervisors
(3) A supervisor of a provisional relevant provider must ensure that appropriate supervision is provided to the provisional relevant provider.
(4) A supervisor of a provisional relevant provider must approve, in writing, any Statement of Advice provided by the provisional relevant provider to a retail client.
Personal advice provided by provisional relevant providers
(5) For the purposes of this Act, personal advice provided (whether orally or in writing) by a provisional relevant provider at a particular time to a retail client in relation to a relevant financial product is taken to have been provided to the client by each person who is, at that time, a supervisor of the provisional relevant provider (instead of by the provisional relevant provider).
Retail clients to be informed of certain matters
(6) A supervisor of a provisional relevant provider must ensure that a retail client is informed:
(a) of the name of each supervisor of the provisional relevant provider (even if the retail client has been informed of the name of each previous supervisor); and
(b) that the provisional relevant provider is undertaking work and training in accordance with subsection 921B(4); and
(c) that each supervisor is responsible for any personal advice provided by the provisional relevant provider to the client in relation to a relevant financial product.
Provisional relevant providers not to obstruct or hinder supervision
(7) A provisional relevant provider must not obstruct or hinder a supervisor of the provisional relevant provider in ensuring that appropriate supervision is provided to the provisional relevant provider.
Note: Under section 921U, the standards body may provide further for the purposes of this section.
Division 8B - Compliance schemes
Subdivision A - Compliance schemes to cover relevant providers
921G Meaning of compliance scheme
(1) A compliance scheme is a scheme:
(a) that meets the requirements of this section; and
(b) under which compliance with the Code of Ethics by relevant providers covered by the scheme is monitored and enforced.
Monitoring body of compliance scheme
(2) A monitoring body for a compliance scheme must monitor and enforce compliance with the Code of Ethics by any relevant provider covered by the scheme.
(3) A monitoring body for a compliance scheme must not be:
(a) a financial services licensee; or
(b) an associate of a financial services licensee.
(4) A compliance scheme must name the monitoring body for the scheme.
Disputes and complaints
(5) A compliance scheme must set out how a dispute is to be resolved between the monitoring body for the scheme and a relevant provider covered by the scheme.
(6) A compliance scheme must set out how a person may make a complaint to the monitoring body for the scheme in relation to a failure to comply with, or possible failure to comply with, the Code of Ethics by a relevant provider covered by the scheme.
Name of compliance scheme
(7) A compliance scheme must have a name.
921H Financial services licensees to ensure compliance scheme covers relevant providers
(1) A financial services licensee must ensure that a compliance scheme covers:
(a) if the licensee is a relevant provider - the licensee; and
(b) in any case - any relevant provider authorised to provide personal advice to retail clients, on behalf of the licensee, in relation to relevant financial products.
Note: For when a compliance scheme covers a relevant provider, see section 921J.
(2) A compliance scheme must cover a relevant provider within 30 business days of the following:
(a) the day the person becomes a relevant provider;
(b) if the relevant provider was previously covered by only one compliance scheme that has ceased to cover the relevant provider - the day that scheme ceased to cover the relevant provider.
921J When a compliance scheme covers a relevant provider
(1) A compliance scheme covers a relevant provider if:
(a) an approval is in force under section 921K in relation to the compliance scheme; and
(b) the condition in subsection (2) of this section is met for the relevant provider; and
(c) if the monitoring body for the compliance scheme is a professional association - the relevant provider is a member of the professional association.
Notifying ASIC of the compliance scheme that covers a relevant provider
(2) The condition in this subsection is met for a relevant provider in relation to a compliance scheme if:
(a) both of the following apply:
(i) the notice lodged under section 922D in relation to the relevant provider stated that the compliance scheme is to cover the relevant provider;
(ii) no notice has been lodged under section 922H stating that another compliance scheme is to cover the relevant provider; or
(b) the most recent notice lodged under section 922H, in relation to particulars entered on the Register of Relevant Providers about the compliance scheme that is to cover the relevant provider, stated that the compliance scheme is to cover the relevant provider.
Note: A notice must be lodged under section 922H when there is a change in a matter for a relevant provider.
Subdivision B - Approval of compliance schemes
921K Approval of compliance schemes
(1) A monitoring body for a compliance scheme may apply to ASIC for approval of the compliance scheme.
Note: A monitoring body for a compliance scheme may propose to modify the scheme (see section 921R).
(2) The application must set out details of the scheme, including:
(a) the name of the monitoring body for the scheme; and
(b) arrangements for monitoring compliance with the Code of Ethics by relevant providers covered by the scheme; and
(c) sanctions for failures to comply with the Code of Ethics by relevant providers covered by the scheme; and
(d) arrangements for resolving disputes between the monitoring body and relevant providers covered by the scheme; and
(e) arrangements for making complaints to the monitoring body in relation to failures to comply with, or possible failures to comply with, the Code of Ethics by relevant providers covered by the scheme.
(3) The application must include evidence that the monitoring body has sufficient resources and expertise to appropriately monitor and enforce compliance with the Code of Ethics under the scheme.
Approval of compliance scheme
(4) ASIC may approve the scheme if it is satisfied that:
(a) compliance with the Code of Ethics will be appropriately monitored and enforced under the scheme; and
(b) the monitoring body has sufficient resources and expertise to appropriately monitor and enforce compliance with the Code of Ethics under the scheme.
(5) ASIC may approve the scheme subject to any one or more conditions ASIC considers appropriate.
(6) ASIC must, within a reasonable period, decide the application and notify the monitoring body of:
(a) the decision; and
(b) any condition mentioned in subsection (5).
Revocation of approval, imposition of additional conditions etc.
(7) ASIC may, in accordance with subsection (8), take an action specified under subsection (9) if ASIC is satisfied:
(a) that compliance with the Code of Ethics is not being appropriately monitored or enforced under the scheme; or
(b) that the monitoring body has not complied with:
(i) section 921N (obligation to notify licensee of failure to comply with Code of Ethics); or
(ii) a request under section 921Q (obligation to provide ASIC with information); or
(iii) section 921T (obligation to notify ASIC of changes to monitoring body); or
(iv) section 922HD (obligation to notify ASIC in relation to failures to comply with the Code of Ethics); or
(c) that the monitoring body does not have sufficient resources or expertise to appropriately monitor or enforce compliance with the Code of Ethics under the scheme.
(8) ASIC must not take an action specified under subsection (9) unless:
(a) ASIC gives a written notice to the monitoring body:
(i) providing reasons why ASIC is considering taking the action; and
(ii) stating that the monitoring body has 90 business days to make submissions to ASIC, in accordance with the notice, about the possible action; and
(b) ASIC has considered any submissions made by the monitoring body in accordance with the notice.
(9) The following actions are specified:
(a) revoking the approval of the scheme;
(b) varying a condition imposed in relation to the approval of the scheme;
(c) imposing an additional condition in relation to the approval of the scheme.
Revocation of conditions etc.
(10) ASIC may revoke or vary a condition imposed in relation to the approval of the scheme if ASIC is satisfied that compliance with the Code of Ethics will continue to be appropriately monitored and enforced under the scheme if ASIC revokes or varies the condition.
(11) ASIC must, within a reasonable period, notify the monitoring body if ASIC revokes or varies a condition under subsection (10).
Subdivision C - Investigations by monitoring body
921L Investigations by monitoring body
Investigation into failure, or possible failure, to comply with Code of Ethics
(1) The monitoring body for a compliance scheme must determine, in writing, whether a relevant provider covered by the scheme has failed to comply with the Code of Ethics if the monitoring body becomes aware of the failure, or possible failure, by the relevant provider to comply with the Code of Ethics.
Notifying relevant provider of investigation
(2) Within a reasonable period of becoming so aware, the monitoring body must notify the relevant provider that the monitoring body:
(a) has become so aware; and
(b) is to make a determination under subsection (1).
Note: A monitoring body that fails to comply with this subsection may commit an offence (see subsection 921M(1)).
Request for information
(3) After becoming so aware, the monitoring body may request, in writing, any one or more of the following persons to provide information, documents or any other reasonable assistance to the monitoring body, within a reasonable specified period:
(a) if the relevant provider is a financial services licensee - the licensee;
(b) if the relevant provider is not a financial services licensee:
(i) the relevant provider; or
(ii) the financial services licensee on whose behalf the relevant provider is authorised to provide personal advice to retail clients in relation to relevant financial products; or
(iii) if the relevant provider is a relevant provider as a result of section 916B - the authorised representative who authorised the relevant provider under that section.
Note: A person who fails to comply with a request under this subsection may commit an offence (see subsection 921M(2)).
Restriction on relevant provider leaving compliance scheme
(4) The relevant provider must not cause a notice to be lodged under section 922H stating that another compliance scheme is to cover the relevant provider before the monitoring body has made a determination under subsection (1).
Note: A relevant provider who fails to comply with this subsection may commit an offence (see subsection 921M(3)).
Completion of investigation
(5) The monitoring body must make the determination:
(a) if the relevant provider notifies the monitoring body that the relevant provider intends to cause a notice to be lodged under section 922H stating that another compliance scheme is to cover the relevant provider - within 160 days of receiving the notice; or
(b) otherwise - within a reasonable period of becoming aware of the failure, or possible failure, by the relevant provider to comply with the Code of Ethics.
Note: A monitoring body that fails to comply with this subsection may commit an offence (see subsection 921M(1)).
Determination by monitoring body not a legislative instrument
(6) The determination is not a legislative instrument.
Offence
(7) A person commits an offence if:
(a) the person is a monitoring body for a compliance scheme; and
(b) information is disclosed to the person in accordance with subsection 70-40(3AA) of the Tax Agent Services Act 2009; and
(c) the person uses or discloses the information for a purpose other than monitoring or enforcing compliance with the Code of Ethics under the scheme.
Penalty: 10 penalty units.
921M Offences relating to investigations by monitoring body
Failure by monitoring body to notify relevant provider of investigation or complete investigation
(1) A person commits an offence if:
(a) the person is a monitoring body for a compliance scheme; and
(b) the person fails to comply with subsection 921L(2) or (5).
Penalty: 10 penalty units.
Failure to comply with request for information
(2) A person commits an offence if:
(a) a request is made of the person under subsection 921L(3); and
(b) the person fails to comply with the request within the period specified.
Penalty: 10 penalty units.
Leaving compliance scheme before investigation completed
(3) A person commits an offence if:
(a) the person is a relevant provider; and
(b) the person is covered by a compliance scheme; and
(c) the monitoring body for the scheme notifies the person that the monitoring body has become aware of a failure, or possible failure, by the person to comply with the Code of Ethics; and
(d) the person contravenes subsection 921L(4).
Penalty: 10 penalty units.
921N Obligation to notify licensee of failure to comply with Code of Ethics
(1) A monitoring body for a compliance scheme that covers a relevant provider must notify a financial services licensee if:
(a) either:
(i) the monitoring body determines under subsection 921L(1) that the relevant provider has failed to comply with the Code of Ethics; or
(ii) the monitoring body imposes a sanction on the relevant provider in relation to a failure to comply with the Code of Ethics; and
(b) the relevant provider is authorised by the licensee to provide personal advice to retail clients in relation to relevant financial products.
(2) The monitoring body must notify the licensee within 30 days after making the determination or imposing the sanction.
Note 1: The approval for a compliance scheme may be revoked if the monitoring body for the scheme does not comply with this section (see subsection 921K(7)).
Note 2: ASIC must be notified if a monitoring body becomes aware of a failure, or possible failure, to comply with the Code of Ethics by a relevant provider, or if a sanction is imposed on a relevant provider under a compliance scheme (see section 922HD).
Subdivision D - Other provisions
921P Obligation to ensure that compliance scheme is publicly available
(1) A monitoring body for a compliance scheme must ensure that the scheme is publicly available while any approval given under section 921K is in force in relation to the scheme.
Offence
(2) A person commits an offence if:
(a) the person is a monitoring body for a compliance scheme; and
(b) an approval given under section 921K is in force in relation to the scheme; and
(c) the scheme is not publicly available.
Penalty: 10 penalty units.
921Q Obligation to provide ASIC with information
(1) ASIC may request, in writing, a monitoring body for a compliance scheme to give ASIC any specified information or documents about the compliance scheme within a reasonable specified period.
(2) The monitoring body must comply with the request within the period specified.
Note: The approval for a compliance scheme may be revoked if the monitoring body for the scheme does not comply with this section (see subsection 921K(7)).
921R Modification of compliance scheme
(1) While an approval given under section 921K is in force in relation to a compliance scheme, the monitoring body for the scheme may, by written notice given to ASIC, propose to modify the scheme.
(2) The notice must:
(a) set out the text of the proposed modification; and
(b) contain an explanation of the purpose of the proposed modification.
Disallowance of modification
(3) Within the 28-day period beginning on the day ASIC receives the notice, ASIC may, by written notice given to the monitoring body, disallow all or a specified part of the proposed modification if ASIC is satisfied on reasonable grounds that:
(a) compliance with the Code of Ethics will not be appropriately monitored or enforced under the scheme as modified; or
(b) if the proposed modification is a new monitoring body for the scheme - the new monitoring body does not have sufficient resources or expertise to appropriately monitor or enforce compliance with the Code of Ethics under the scheme.
Effect of disallowance
(4) If ASIC disallows the proposed modification within the 28-day period, the proposed modification does not take effect.
(5) If ASIC disallows a specified part of the proposed modification within the 28-day period:
(a) the specified part does not take effect; and
(b) the proposed modification without the specified part takes effect at the end of the period.
No disallowance
(6) Otherwise, the proposed modification takes effect at the end of the 28-day period.
921S Obligation to review compliance scheme
(1) A monitoring body for a compliance scheme must cause another person to complete a review of the scheme before the end of:
(a) the 5-year period beginning on the day ASIC approves the scheme under section 921K; and
(b) each subsequent 5-year period.
(2) The other person mentioned in subsection (1) must not be:
(a) an associate of the monitoring body; or
(b) a person covered by the scheme; or
(c) if a relevant provider covered by the scheme is authorised to provide personal advice to retail clients, on behalf of a financial services licensee, in relation to relevant financial products - the licensee; or
(d) if a relevant provider covered by the scheme is a member of a professional association - the professional association.
(3) As soon as reasonably practical after the review has been completed, the monitoring body must:
(a) make the review publicly available; and
(b) give a copy of the review to ASIC.
921T Obligation to notify ASIC of changes to monitoring body
A monitoring body for a compliance scheme must notify ASIC if the monitoring body significantly reduces the resources or expertise that it uses to monitor or enforce compliance with the Code of Ethics under the scheme.
Note: The approval for a compliance scheme may be revoked if the monitoring body for the scheme does not comply with this section (see subsection 921K(7)).
Division 8C - The standards body
Subdivision A - Functions of the standards body
921U Functions of the standards body
(1) The functions of the standards body are:
(a) to make the legislative instruments mentioned in subsections (2), (3) and (5); and
(b) to review those instruments regularly; and
(c) if an application is made under subsection 921V(1) for approval of a foreign qualification - to approve, or refuse to approve, the foreign qualification; and
(d) if an exam approved for the purposes of subsection 921B(3) is to be administered by the standards body - to administer the exam; and
(e) any other function prescribed by this Act.
Legislative instruments
(2) The standards body must, by legislative instrument:
(a) do any or all of the following in one or more determinations:
(i) approve bachelor or higher degrees, or equivalent qualifications, for the purposes of paragraph 921B(2)(a);
(ii) approve an exam for the purposes of subsection 921B(3);
(iii) set requirements for work and training for the purposes of subsection 921B(4);
(iv) set requirements for continuing professional development for the purposes of subsection 921B(5) in relation to the CPD year of a financial services licensee, the period mentioned in subsection 1546E(5), or any other period determined by the standards body;
(v) specify a word or expression to refer to a provisional relevant provider; and
(b) make a Code of Ethics for the purposes of section 921E.
(3) The standards body may, by legislative instrument, in one or more determinations, modify the operation of a provision in this Part in relation to a period determined by the standards body under subparagraph (2)(a)(iv).
(4) A determination made under subsection (3) has effect according to its terms, despite any other provision of this Act.
(5) The standards body may, by legislative instrument, do either or both of the following in one or more determinations:
(a) provide further in relation to the requirements set out in section 921F (requirements relating to provisional relevant providers);
(b) set other requirements in relation to a person who is a provisional relevant provider.
Consultation
(6) Before making a legislative instrument under subsection (2), (3) or (5), or when reviewing a legislative instrument under paragraph (1)(b), the standards body must consult:
(a) financial services licensees; and
(b) relevant providers; and
(c) associations representing consumers of financial services; and
(d) professional associations; and
(e) ASIC and the Department; and
(f) any other person or body that the standards body considers it appropriate to consult.
(7) Without limiting subsection (6), the standards body is taken to have consulted the persons and bodies mentioned in that subsection if, on its website, the standards body:
(a) before making a legislative instrument under subsection (2), (3) or (5):
(i) makes the proposed legislative instrument, or a description of the content of the proposed legislative instrument, available; and
(ii) invites those persons and bodies to comment on the proposed legislative instrument; or
(b) when reviewing a legislative instrument under paragraph (1)(b) - invites those persons and bodies to comment on the legislative instrument.
(8) A failure to comply with subsection (6) does not affect the validity or enforceability of a legislative instrument made under subsection (2), (3) or (5).
Fees
(9) The standards body may charge fees for things done in performing its functions.
Note: For the treatment of legislative instruments made under this section when the declaration of a body corporate to be the standards body is revoked, see section 921Y.
921V Approval of foreign qualifications
Application for approval
(1) A person who has completed a foreign qualification may apply to the standards body for approval of the foreign qualification.
(2) An application under subsection (1) must be in a form approved, in writing, by the standards body.
Approval or refusal to approve
(3) The standards body must either:
(a) approve the foreign qualification in accordance with subsection (4); or
(b) refuse to approve the foreign qualification.
(4) The standards body may approve the foreign qualification only if:
(a) the standards body is satisfied that the foreign qualification gives the person qualifications equivalent to a degree or qualification approved by the standards body for the purposes of paragraph 921B(2)(a); or
(b) both of the following apply:
(i) the standards body specifies one or more courses to be completed by the person under subsection (5) of this section;
(ii) the person completes each of those courses.
(5) The standards body may specify one or more courses for the purposes of paragraph (4)(b) only if the standards body is satisfied that (together with the person's foreign qualification) the course or courses will give the person qualifications equivalent to a degree or qualification approved by the standards body for the purposes of paragraph 921B(2)(a).
When approval takes effect
(6) An approval under paragraph (3)(a) comes into force:
(a) if the standards body specifies one or more courses to be completed by the person under subsection (5) - when the person has completed all of those courses; or
(b) otherwise - when it is given.
Review of decision
(7) A person may apply to the Tribunal for review of:
(a) a decision by the standards body under paragraph (3)(b) to refuse to approve the person's foreign qualification; or
(b) a decision by the standards body under subsection (5) to specify one or more courses to be completed by the person.
Notice of reviewable decision and review rights
(8) Section 1317D applies in relation to a decision mentioned in paragraph (7)(a) or (b) of this section as if:
(a) the standards body were a decision maker for the purposes of section 1317D; and
(b) the decision were a decision to which section 1317B applied.
921W Commencement of Code of Ethics and amendments of Code of Ethics
(1) The Code of Ethics must not commence earlier than 30 days after the Code is registered under the Legislation Act 2003.
(2) An amendment of the Code of Ethics must not commence earlier than 30 days after the amendment is registered under the Legislation Act 2003.
Subdivision B - Declaration of the standards body
921X Minister to declare a body corporate to be the standards body
(1) The Minister may (subject to subsection (2)), by notifiable instrument, declare a body corporate to be the standards body.
(2) The Minister may make a declaration under subsection (1) only if the following requirements are met:
(a) the body is a company limited by guarantee;
(b) the Minister is satisfied that the body is likely to comply with its obligations under this Act and other laws of the Commonwealth;
(c) the body's constitution provides the following:
(i) the functions of the body mentioned in section 921U;
(ii) the body must not be operated for profit;
(iii) the body must have 9 directors;
(iv) at least 3 directors (excluding the chair of the board of directors) must have experience in carrying on a financial services business or providing a financial service;
(v) at least 3 directors (excluding the chair of the board of directors) must have experience in representing consumers of financial services;
(vi) at least one director (excluding the chair of the board of directors) must have experience in the field of ethics;
(vii) at least one director (excluding the chair of the board of directors) must have experience in designing, or the requirements of, educational courses or qualifications;
(viii) a director must not hold a managerial or executive office in a professional association or association representing consumers of financial services;
(ix) a director must not represent any professional association, or association representing consumers of financial services, to which the director belongs;
(x) the Minister must appoint each director;
(xi) a director may resign his or her appointment by giving the Minister, and the body, a written resignation;
(xii) the resignation takes effect on the day it has been received by both the Minister and the body or, if a later day is specified in the resignation, on that later day.
(3) The declaration must specify the time at which it takes effect.
(4) The Minister must table the declaration in each House of the Parliament as soon as practicable.
921Y Minister may revoke declaration under section 921X
(1) The Minister may, at any time, by notifiable instrument, revoke a declaration under section 921X.
(2) The revocation must specify:
(a) the time at which it takes effect; and
(b) which legislative instruments made by the standards body under subsection 921U(2), (3) or (5) continue in force, and which are taken to be revoked at that time; and
(c) which approvals (if any) given by the standards body under paragraph 921V(3)(a) continue in force (or are to come into and continue in force), and which are taken to be revoked at that time.
(3) A revocation under subsection (1) that specifies that a legislative instrument, or an approval, is taken to be revoked at a particular time has effect according to its terms.
Tabling of revocation
(4) The Minister must table the revocation in each House of the Parliament as soon as practicable.
Performance by Minister of certain functions of standards body when no declaration is in force
(5) If no declaration under section 921X is in force at a particular time, the Minister may make a legislative instrument or decision as if the Minister were performing the functions of the standards body under paragraph 921U(1)(a) or (c).
Instruments and decisions made by Minister etc.
(6) If a declaration under section 921X comes into force after the Minister has made a legislative instrument or decision for the purposes of subsection (5) of this section, the standards body may vary or revoke the legislative instrument or decision.
Relationship with Acts Interpretation Act 1901
(7) This section does not limit the operation of subsection 33(3) of the Acts Interpretation Act 1901.
Subdivision C - Other provisions relating to the standards body
921Z Modification of the standards body's constitution
(1) As soon as practicable after a significant modification of the standards body's constitution takes effect, the standards body must notify the Minister in writing of the modification.
(2) The notice must:
(a) set out the text of the modification; and
(b) specify the date on which the modification takes effect; and
(c) contain an explanation of the purpose of the modification.
(3) If no notice is lodged with the Minister within 21 days after the modification takes effect, the modification ceases to have effect.
(4) A notice made under this section is not a legislative instrument.
921ZA Disallowance of modifications of the standards body's constitution
(1) Within 28 days after receiving a notice under section 921Z, the Minister may disallow all or a specified part of the modification of the standards body's constitution.
(2) As soon as practicable after all or part of a modification is disallowed, the Minister must give notice of the disallowance to the standards body. The modification ceases to have effect, to the extent of the disallowance, when the standards body receives the notice.
921ZB Minister may direct the standards body to do certain things
(1) The Minister may give a written direction to the standards body if the Minister considers that the standards body is not complying with its obligations under this Act or under any arrangement it has with the Commonwealth.
(2) The standards body must comply with the direction.
(3) The Minister may, at any time, vary or revoke a direction.
(4) Despite paragraph (b) in the definition of director in section 9, the Minister is not a director of the standards body.
921ZC Annual report
As soon as practicable after the end of a financial year, the standards body must:
(a) publish on its website the annual report for the financial year prepared under Chapter 2M; and
(b) give a copy of the report to the Minister.