House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Financial Services & Regulation,the Honourable Joe Hockey, MP)

Outline

1.1 This Bill continues the Government's financial sector reform agenda. It builds on the financial sector legislation already implemented by the Government in response to the recommendations of the 1997 Financial System Inquiry chaired by Mr Stan Wallis.

1.2 The Bill is an important further step in the Government's drive to develop and maintain a world class regulatory framework for the Australian financial sector: a framework which assists the financial sector to be efficient, responsive, competitive and flexible, but which retains the principles of stability, prudence, integrity and fairness.

1.3 The Financial Sector Legislation Amendment Bill (No.1) 2000 aims to ensure the safety of superannuation savings, and update and enhance Australia's financial sector legislation. The more significant amendments will:

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strengthen the enforcement provisions of the Superannuation Industry (Supervision) Act 1993 ;

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facilitate the application of the Commonwealth's Criminal Code to certain offences in the Superannuation Industry (Supervision) Act 1993 ;

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enhance the prudential regulation of Authorised Deposit-taking Institutions (ADIs);

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rationalise and consolidate the Commonwealth's unclaimed moneys provisions; and

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simplify and modernise service provisions in the Reserve Bank Act 1959 .

1.4 The Bill also clarifies the extent of the Australian Prudential Regulation Authority's (APRA) powers to provide actuarial services over the period the Australian Government Actuary (AGA) was part of APRA, and makes miscellaneous minor amendments to financial sector legislation.

Financial impact statement

1.5 It is not envisaged that the Bill will have a financial impact on the operations of Government.