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Wales) Amendment Bill 1996
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
(a)
to permit retained earnings in the Credit Unions Contingency Fund to
be treated as contributions made by credit unions to that fund, and
(b)
to dispense with the right of appeal under the Act to the Queensland
Supreme Court in respect of decisions of the Australian Financial
Institutions Appeals Tribunal.
Outline of provisions
Clause 1 sets out the name (also called 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 is a formal provision giving effect to the amendments to the
Financial Institutions (New South Wales) Act 1992 set out in Schedule 1 .
Clause 4 is a saving of rights, in relation to matters pending, in respect of
appeals abolished by the amendment made by Schedule 1 [l].
Schedule 1 [1] repeals section 13 of the Act, which afforded an appeal to the
Queensland Supreme Court against decisions of the Australian Financial
Institutions Appeals Tribunal. In the absence of the section, appeals will lie to
the Supreme Court of New South Wales by virtue of section 96 of the AFIC
Code, applied by section 381 of the Financial Institutions (NSW) Code. (In
section 96 of the AFIC Code, Court means the Supreme Court of New South
Wales, by virtue of section 4 of the AFIC Code and the definition of Court in
the Financial Institutions (NSW) Code.)
Schedule 1 [2] repeals sections 24 and 25 of the Act, the operation of which
is now spent, and inserts a new section 24. The new section permits the
Financial Institutions Commission to determine that retained earnings in the
Credit Unions Contingency Fund (that is, amounts credited to the Fund other
than actual contributions from credit unions) are to be regarded as
contributions to the Fund by credit unions and apportioned among the credit
unions' contribution accounts accordingly. The Commission must be satisfied
that the distribution will not affect the viability of the fund with respect to the
purposes for which it was established. A consequence of regarding funds as
contributions by a credit union is that the funds concerned are treated as an
asset of the credit union and are taken into account for the purpose of
determining future levels of contribution. In a proper case, some or all of
those funds might be refunded under section 98A of the Financial
Institutions (NSW) Code.
Explanatory note page 2