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FINANCIAL INSTITUTIONS COMMISSION BILL 1992
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
This Bill is cognate with the Financial Institutions (New South Wales) Bill 1992.
The object of this Bill is to provide for the establishment of the New South Wales
Financial Institutions Commission as the body that is to exercise the functions of the
State Supervisory Authority for New South Wales under proposed uniform financial
institutions legislation.
That legislation will provide for the prudential supervision of building societies,
credit unions and certain industry credit providers. It is based on laws enacted in
Queensland and proposed to be applied as laws in all States and Territories.
The Commission will also exercise the functions of the Registrar of Co-operatives
under the Co-operation Act 1923 (in respect of co-operative housing societies) and
under the Friendly Societies Act 1989.
The Commission will be independent of Government.
The Bill provides for the following:
· the establishment of the Commission as a statutory body independent of the
Government with functions imposed on it under the financial institutions
legislation and certain Acts;
· the management of the Commission by a Board consisting of a full-time Chief
Executive and 3 part-time members;
· employment of staff by the Commission;
· the duties and liabilities of members of the Board and the staff of the
Commission;
· the keeping of a Register of financial interests that members of the Board or staff
members and their spouses and children have in financial institutions;
· financial matters, including the Commission's budget;
· the procedures of the Board;
· consequential amendments to other Acts;
· savings and transitional provisions for the transfer of staff to the Commission
from the Registry of Co-operatives and the Credit Union Savings Reserve Board.
PART
l--PRELIMINARY
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on a day or days to
be appointed by proclamation.
Clause 3 contains definitions.
Clause 4 provides that words and expressions used in the proposed Act have the
same meanings as in the financial institutions legislation.
PART 2--THE COMMISSION
Clause 5 constitutes the Commission as a body corporate with the corporate name
of the New South Wales Financial Institutions Commission (or FINCOM).
Clause 6 states that the Commission has the functions conferred on it by or under
the financial institutions legislation, the Co-operation Act 1923, the Friendly Societies
Act 1989 or any other Act.
Clause 7 provides for the general powers of the Commission.
Clause 8 provides that the Commission is independent of Government.
Clause 9 requires the Commission to comply with the financial institutions
agreement between the States and Territories on which the financial institutions
legislation is based.
Clause 10 provides that the Commission does not represent the Crown.
Clause 11 provides that the Commission is an exempt public authority for the
purposes of the Corporations Law.
Clause 12 deals with the keeping and affixing of the seal of the Commission.
PART 3--MANAGEMENT OF THE COMMISSION
Clause 13 establishes a 4 member Board of the Commission consisting of a
full-time Chief Executive and 3 part-time members.
Clause 14 deals with the qualifications of the appointed members of the Board.
Clause 15 states the functions of the Board-
Clause 16 deals with the appointment of the Chief Executive.
Clause 17 provides that the Chief Executive manages the Commission in
accordance with the policies determined by the Board
PART 4--STAFF ETC.
Clause 18 deals with employment of staff by the Commission.
Clause 19 deals with arrangements for the use of staff of public authorities.
Clause 20 gives the Commission power to engage consultants.
PART 5-DUTIES
AND LIABILITIES OF BOARD AND STAFF
Division 1--General duties and liabilities
Clause 21 imposes various duties on members of the Board, including the duty to
act honestly at all times.
Clause 22 confers certain protections from liability on Board members and staff
members.
Division 2-Register of Financial Interests
Clause 23 contains definitions for the purposes of the proposed Division.
Clause 24 requires the Commission to keep a Register of Financial Interests.
Clause 25 requires Board members and staff members to disclose certain interests
that they or their spouses and children have in financial institutions.
Clause 26 deals with the noting of disclosed matter on the Register.
Clause 27 requires the Register to be kept at the Commission's principal office and
to be open for inspection free of charge.
PART 6--FINANCE
Clause 28 deals with the preparation of a budget by the Commission and the
determination of that budget by the Minister.
Clause 29 requires the Commission to consult with industry bodies and societies in
preparing its draft budget.
Clause 30 provides that the expenses of the Commission in exercising its functions
under the Co-operation Act 1923 or the Friendly Societies Act 1989 are payable out of
the Supervision Fund established under the proposed Financial Institutions (NSW)
Code. The clause also makes it clear that remuneration and allowances payable under
the proposed Act are payable out of that Fund.
Clause 31 permits the Commission to appoint a registered company auditor as its
auditor for the purposes of the Public Finance and Audit Act 1983. The Commission
will still be able to be the subject of a special audit under that Act by the
Auditor-General.
PART 7--GENERAL
Clause 32 states that the proposed Act binds the Crown.
Clause 33 enables the Commission to delegate functions to certain persons,
including the State Supervisory Authority of another State.
Clause 34 authorises the Commission to receive a delegation of functions from the
State Supervisory Authority of another State.
Clause 35 deals with evidentiary matters.
Clause 36 provides for the way in which documents are to be served on the
Commission.
Clause 37 deals with the recovery of money owing to the Commission.
Clause 38 provides for the manner in which prosecutions for offences under the
proposed Act are to be dealt with.
Clause 39 is a regulation-making power.
Clause 40 gives effect to Schedule 2 which contains consequential amendments to
other Acts.
Clause 41 gives effect to Schedule 3 which contains savings and transitional
provisions for the transfer of staff to the Commission.
Schedule 1 contains provisions relating to the members and procedure of the Board.
Schedule 2 makes consequential amendments to other Acts.
Schedule 3 contains savings and transitional provisions.