House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, The Hon Josh Frydenberg MP)

General outline and financial impact

Financial Sector Reform (Hayne Royal Commission Response - Stronger Regulators (2019 Measures)) Bill 2019

This Bill implements recommendations from the ASIC Enforcement Review Taskforce Report to:

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harmonise ASIC's search warrant powers;

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improve ASIC's ability to access certain telecommunications information;

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strengthen ASIC's licencing powers; and

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extend ASIC's banning powers to ban individuals from managing financial services businesses.

Date of effect: The day after Royal Assent.

Proposal announced: This Bill implements 16 recommendations made in ASIC Enforcement Review Taskforce Report agreed to by the Government on 16 April 2018.

Financial impact: Nil

Human rights implications: This Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 6, paragraphs 6.1 to 6.50.

Compliance cost impact: The amendments which implement recommendations 26 and 28 of the ASIC Enforcement Review Taskforce Report are estimated to have a minor regulatory impact on business, community organisations or individuals. The other amendments in the Bill have no compliance cost impact.

The ASIC Enforcement Review Taskforce Report was certified by the Department of the Treasury as a process and analysis equivalent to a Regulation Impact Statement.

The ASIC Enforcement Review Taskforce Report can be found at this link:

http://treasury.gov.au/review/asic-enforcement/r2018-282438