Explanatory Memorandum
(Circulated by authority of the Treasurer, the Honourable Peter Costello MP)11 Schedule 7: Amendment of the Financial Corporations Act 1974
Consistent with the changes in the Banking Act 1959, the amendments contained in Schedule 7 of this Bill will exempt authorised deposittaking institutions from data collection requirements under the Financial Corporations Act 1974 (FCA). As a consequence, in the event that building societies and credit unions are regulated under the Banking Act 1959, these institutions will not be required to provide the same data to both the Reserve Bank of Australia (RBA) and the Australian Prudential Regulation Authority (APRA).
The Treasurer's powers with respect to categorising registered corporations and exempting corporations from the application of the FCA will be transferred to the Governor of the RBA.
Commencement
11.1 The amendments to the Financial Corporations Act 1974 will become effective when the APRA is established
Amendments
11.2 This Item inserts a definition of the Governor of the RBA into subsection 4(1) of the FCA.
11.3 This item replaces the reference to "banks" being exempted under the Banking Act 1959 with a reference to "authorised deposittaking institutions" in paragraph 8(2)(b). This change is necessary given that the amendments to the Banking Act 1959 (in Schedule 2 of this Bill) will widen the scope of that Act to encompass banks and other deposit taking institutions.
11.4 This item transfers the power from the Treasurer to the Governor of the RBA to exempt corporations from the application of the Act.
11.5 This item repeals the existing paragraph 9(9)(c) and substitutes it with a paragraph to enables corporations that cease to exist or cease to be covered by the Act to be removed from the Register kept by the RBA, whether or not these corporations apply for removal from the Register.
Items FC20, 25, 35, 40, 50, 65 and 70
11.6 These items transfer the Treasurer's power under section 10 to the Governor of the RBA with respect to listing, varying and categorising registered corporations under the FCA and publishing the list of registered corporations and any variations.
11.7 This item repeals subsections 10(3), (5B) and (5C) as the Treasurer will no longer have a role in categorising or varying registered corporations under the FCA.
11.8 This item removes the requirement of the Treasurer to give to the RBA a copy of any list of registered corporations.
11.9 This item repeals subsection 10(8) as the RBA advice is no longer required by the Treasurer in exercising his or her functions under subsection 10(7).
11.10 This item repeals subsection 11(12) as there is no longer a need to direct the Statistician to prepare and publish statements containing such information as requested.
11.11 This item allows the Governor of the RBA to exempt a corporation from the requirement to prepare statements in accordance with regulations.
11.12 This item repeals the existing delegation provision in section22A and replaces that provision with an item to allow the Governor of the RBA to delegate the powers under paragraph8(2)(l) and section10 other than subsection 10(1) to an officer in the Reserve Bank Service as defined in section66 of the Reserve Bank Act1959.
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