Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Josh Frydenberg MP)General outline and financial impact
The Financial Regulator Assessment Authority Bill 2021 and the Financial Regulator Assessment Authority (Consequential Amendments and Transitional Provisions) Bill 2021 give effect to recommendations 6.13 and 6.14 of the Financial Services Royal Commission by establishing the Financial Regulator Assessment Authority to assess the effectiveness and capability of each of APRA and ASIC.
Date of effect: The Financial Regulator Assessment Authority Bill 2021 commences on the later of the day after that Bill receives the Royal Assent and 1 July 2021.
The Financial Regulator Assessment Authority (Consequential Amendments and Transitional Provisions) Bill 2021 commences on the later of the start of the day after Royal Assent and the time the Financial Regulator Assessment Authority Bill 2021 commences. However, the Financial Regulator Assessment Authority (Consequential Amendments and Transitional Provisions) Bill 2021 will not commence at all if the Financial Regulator Assessment Authority Bill 2021 does not commence.
Proposal announced: The proposal was announced on 4 February 2019 as part of the Government's response to the Financial Services Royal Commission.
Financial impact: In the 2019-20 Budget the Government provided $7.7m over three years from 2020-21 to establish the Authority.
Human rights implications: The Financial Regulator Assessment Authority Bill 2021 and Financial Regulator Assessment Authority (Consequential Amendments and Transitional Provisions) Bill 2021 are compatible with human rights. See Statement of Compatibility with Human Rights - Chapter 2.
Compliance cost impact: Nil
The Financial Services Royal Commission Final Report has been certified as being informed by a process and analysis equivalent to a Regulation Impact Statement for the purposes of the Government decision to implement this reform.
The Financial Services Royal Commission Final Report can be accessed through the Australian Parliament House website. [1]
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