Australian Financial Institutions Commission Code (Qld)

Queensland AUSTRALIAN FINANCIAL INSTITUTIONS COMMISSION CODE Reprinted as in force on 20 November 1997 (includes amendments up to Act No. 33 of 1997) Reprint No. 3A This reprint is prepared by the Office of the Queensland Parliamentary Counsel Warning—This reprint is not an authorised copy

Information about this reprint This Code is reprinted as at 20 November 1997. The reprint— • shows the law as amended by all amendments that commenced on or before that day (Reprints Act 1992 s 5(c)) • incorporates all necessary consequential amendments, whether of punctuation, numbering or another kind (Reprints Act 1992 s 5(d)). The reprint includes a reference to the law by which each amendment was made—see list of legislation and list of annotations in endnotes. This page is specific to this reprint. See previous reprints for information about earlier changes made under the ReprintsAct1992. A table of earlier reprints is included in the endnotes. Also see endnotes for information about— • when provisions commenced • editorial changes made in earlier reprints.

Queensland AUSTRALIAN FINANCIAL INSTITUTIONS COMMISSION CODE TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY Division 1—Introductory 1 Citation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Division 2—Interpretation 3 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4 Interpretation—words etc. used in Financial Institutions Code or Friendly Societies Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 5 Interpretation—meaning of making a decision . . . . . . . . . . . . . . . . . . . . . . . 14 PART 2—THE FINANCIAL INSTITUTIONS SCHEME AND ITS MAIN ELEMENTS Division 1—General 6 The financial institutions scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 7 Initial financial institutions agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 8 Financial institutions legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 8A Friendly societies legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 9 Principal object of financial institutions scheme and its achievement . . . . 16 10 Principles of supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 11 Role of State supervisory authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Division 2—Operation of fiscal bodies legislation 12 Extraterritorial operation of legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 13 Fiscal bodies legislation binds the Crown . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

2 Australian Financial Institutions CommissionCode PART 3—AFIC AND ITS BOARD Division 1—Establishment and general functions and powers of AFIC 14 Establishment of AFIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 15 Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 16 General powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 17 AFIC is body corporate etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 18 AFIC independent body . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 19 AFIC to comply with financial institutions agreement etc. . . . . . . . . . . . . . 23 20 Place of principal office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 21 AFIC does not represent Crown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 22 AFIC exempt public authority under Corporations Law . . . . . . . . . . . . . . . . 23 23 Consultation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Division 2—Establishment and composition of AFIC’s Board 24 The Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 25 Composition of the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 26 Role of the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 27 Duties of executive director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 PART 4—STANDARDS 28 Making etc. of standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 29 Procedures before making of standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 30 Urgent standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 31 Application of changed requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 32 Transitional arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 33 Matters for which standards may make provision . . . . . . . . . . . . . . . . . . . . . 28 34 Publication of standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 35 No discrimination on ground of connection with particular States . . . . . . . 29 PART 5—SPECIAL SERVICES PROVIDERS 36 Registration of special services providers . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 37 Certificate of incorporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 38 Effect of incorporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 39 Effect of incorporation on certain bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

3 Australian Financial Institutions Commission Code 40 Application of Financial Institutions Code . . . . . . . . . . . . . . . . . . . . . . . . . . 32 41 Special services providers to comply with standards . . . . . . . . . . . . . . . . . . 33 PART 6—INDUSTRY FUNDED LIQUIDITY SUPPORT ARRANGEMENTS FOR SOCIETIES 42 Object of Part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 43 Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 44 Determination that liquidity support necessary . . . . . . . . . . . . . . . . . . . . . . . 34 45 Restrictions on making determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 46 Provision of liquidity support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 46A Certain applied provisions not effective . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 46B Limitation on court’s power to make order . . . . . . . . . . . . . . . . . . . . . . . . . . 38 47 AFIC to encourage special services providers to facilitate liquidity support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 PART 6A—NAMES 47A Reference to registration of fiscal body’s name . . . . . . . . . . . . . . . . . . . . . . 39 47B Fiscal body must have certain words as part of name . . . . . . . . . . . . . . . . . 39 47BA Approval of name for use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 47C Reservation of names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 47D Extension of reservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 47E End of reservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 47F AFIC may direct change of name or revoke approval of name . . . . . . . . . . 42 PART 7—PROVISIONS RELATING TO STATE SUPERVISORY AUTHORITIES 48 Obtaining information from State supervisory authorities . . . . . . . . . . . . . . 44 49 Reports to Ministerial Council etc. concerning State supervisory authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 PART 8—ENFORCEMENT POWERS 50 Injunctions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 51 Obtaining information etc. from financial institutions . . . . . . . . . . . . . . . . . 47 52 Obtaining evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 53 Inspectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 54 Inspector to produce identity card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 55 Entry and search—monitoring compliance . . . . . . . . . . . . . . . . . . . . . . . . . . 51

4 Australian Financial Institutions Commission Code 56 Entry and search—evidence of offences . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 57 General powers of inspector in relation to places . . . . . . . . . . . . . . . . . . . . . 54 58 Monitoring warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 59 Offence related warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 60 Offence related warrant may be granted by telephone . . . . . . . . . . . . . . . . . 56 61 Obstruction etc. of inspectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 62 False or misleading statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 63 Proceedings for offences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 PART 9—REVIEW OF DECISIONS Division 1—Appeals Tribunal 64 Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Division 2—Review of decisions 65 Reviewable decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 66 Application for review of decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 67 Way of applying for review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Division 3—Membership of Appeals Tribunal 68 Composition of Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 69 Appointment of members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 70 Qualifications for appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 71 Term of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 72 Terms and conditions of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 73 Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 74 Disclosure of interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 75 Termination of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 76 Acting chairperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Division 4—Organisation of Appeals Tribunal 77 Arrangement of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 78 Constitution of Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 79 Member presiding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 80 Member ceasing to be available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 81 Sitting places . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

5 Australian Financial Institutions CommissionCode Division 5—Conduct of proceedings before Appeals Tribunal 82 Parties to proceeding before Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . 66 83 Appeals Tribunal to determine who are interested persons . . . . . . . . . . . . . 67 84 Representation before Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 85 Procedure of Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 86 Conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 87 Hearings to be in private unless all parties agree etc. . . . . . . . . . . . . . . . . . 69 88 Opportunity to make submissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 89 Particular powers of Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 90 Operation and implementation of a decision that is subject to review . . . . 71 91 Way in which questions to be decided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 92 Power of Appeals Tribunal to dismiss claim or strike out party . . . . . . . . . 72 93 General powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 94 Review by Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 95 Reasons to be given by Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 96 Appeals from decisions of Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . 73 97 Operation and implementation of a decision subject to appeal . . . . . . . . . . 74 98 Reference of questions of law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 99 Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 100 Protection of members etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 101 Failure of witness to attend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 102 Refusal of witness to be sworn or answer questions etc. . . . . . . . . . . . . . . . 77 103 False or misleading evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 104 Contempt of Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 105 Obstructing Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 106 Person not to contravene order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 107 Confidential information not to be disclosed . . . . . . . . . . . . . . . . . . . . . . . . . 78 108 Allowances for witnesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Division 6—Miscellaneous 109 Management of administrative affairs of Tribunal . . . . . . . . . . . . . . . . . . . . 79 110 Appeals Tribunal’s employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

6 Australian Financial Institutions Commission Code 111 Terms and conditions of employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 112 Arrangements relating to staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 113 Consultants to Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 114 Annual report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 115 Delegation of powers by chairperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 PART 10—ACCOUNTABILITY AND FINANCIAL MATTERS 116 Annual reports and financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 117 Board to keep Ministerial Council informed . . . . . . . . . . . . . . . . . . . . . . . . . 82 118 Determination of AFIC’s budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 119 Administration levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 120 Collection of administration levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 PART 11—THE BOARD OF AFIC Division 1—Meetings of the Board 121 Interpretation—meaning of “required minimum number of directors” . . . . 85 122 Times and places of meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 123 Presiding at meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 124 Quorum and voting at meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 125 Conduct of meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 126 Resolutions without meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 127 Minutes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 128 Disclosure of interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 129 Exclusion of executive director from certain deliberations . . . . . . . . . . . . . 88 Division 2—Provisions relating to directors other than the executive director 130 Division applies to directors other than executive director . . . . . . . . . . . . . 88 131 Appointments made by Governor in Council of Queensland on nomination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 132 Restriction on appointments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 133 Directors appointed under Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 134 Appointment not invalid because of appointment defect etc. . . . . . . . . . . . 89 135 Term of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 136 Terms and conditions of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

7 Australian Financial Institutions Commission Code 137 Leave of absence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 138 Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 139 Termination of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 140 Deputy chairperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 141 Acting appointments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Division 3—Provisions relating to the executive director 142 Appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 143 Restriction on appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 144 Executive director appointed under Code . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 145 Appointment not invalid because of appointment defect etc. . . . . . . . . . . . 92 146 Term of appointment etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 147 Executive director not to engage in other paid employment . . . . . . . . . . . . 92 148 Disclosure of interests by executive director . . . . . . . . . . . . . . . . . . . . . . . . . 92 149 Terms and conditions of appointment not provided by Code . . . . . . . . . . . . 93 150 Acting executive director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Division 4—Miscellaneous 151 Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 PART 12—THE STAFF OF AFIC 152 AFIC’s employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 153 Terms and conditions of employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 154 Arrangements relating to staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 PART 13—MISCELLANEOUS 155 Secrecy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 156 Register of financial interests of directors and employees . . . . . . . . . . . . . . 97 157 Directors and employees to act honestly etc. . . . . . . . . . . . . . . . . . . . . . . . . 99 158 Liability of directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 159 Liability of employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 160 AFIC’s seal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 161 Judicial notice of certain signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 162 Evidentiary provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 163 Delegation of AFIC’s powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

8 Australian Financial Institutions Commission Code 164 Delegation of Board’s powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 165 Application of Financial Administration and Audit Act . . . . . . . . . . . . . . . 103 PART 14—TRANSITIONAL 166 Transitional provision for commencement of amendments for applying Code to friendly societies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . 105 INITIAL FINANCIAL INSTITUTIONS AGREEMENT ENDNOTES 1 Index to endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 2 Date to which amendments incorporated . . . . . . . . . . . . . . . . . . . . 139 3 Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 4 Table of earlier reprints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 5 Tables in earlier reprints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 6 List of legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 7 List of annotations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141

s1 9 s3 Australian Financial Institutions Commission Code AUSTRALIAN FINANCIAL INSTITUTIONS COMMISSION CODE [as amended by all amendments that commenced on or before 20 November 1997] PART 1—PRELIMINARY Division 1—Introductory ˙ Citation 1. This Code may be referred to as the AFIC Code. ˙ Commencement 2. This Code commences as provided under section 2 of the AustralianFinancial Institutions Commission Act 1992 of Queensland. Division 2—Interpretation ˙ Definitions 3. In this Code— “affairs” , in relation to a body, has the meaning given by section 53 of the Corporations Law. “AFIC” means the Australian Financial Institutions Commission. “AFIC Act” means the Australian Financial Institutions Commission Act1992 of Queensland. “Appeals Tribunal” means the Australian Financial Institutions Appeals Tribunal. “ASC” means the Australian Securities Commission.

s 3 10 s 3 Australian Financial Institutions Commission Code “association” means (other than in the definition “friendly association”) a body registered under the financial institutions legislation as an association. “Board” means the board of directors of AFIC. “body” includes an entity. “building society” means a body that is— (a) registered under the financial institutions legislation as a society; and (b) authorised under that legislation to operate as a building society. “chairperson” means— (a) in relation to the Board—the chairperson of the Board; or (b) in relation to the Appeals Tribunal—the chairperson of the Appeals Tribunal. “COFS” means the coordinating body known as the Council of Financial Supervisors. “credit union” means a body that is— (a) registered under the financial institutions legislation as a society; and (b) authorised under that legislation to operate as a credit union. “deputy chairperson” means— (a) in relation to the Board—the deputy chairperson of the Board; or (b) in relation to the Appeals Tribunal—a deputy chairperson of the Appeals Tribunal. “director” means a director of the Board, and includes the chairperson, the deputy chairperson and the executive director. “economic entity” means an economic entity for the purposes of Part 3.6 of the Corporations Law. “employee” , in relation to AFIC, includes— (a) a person whose services are made available to AFIC; and

s 3 11 s 3 Australian Financial Institutions Commission Code (b) a person engaged by AFIC on a contract for services. “entity” means an entity for the purposes of Part 3.6 of the CorporationsLaw. “executive director” means the executive director of AFIC. “financial body” means— (a) a society; or (b) an association. “financial institution” means— (a) a society; or (b) an association; or (c) a special services provider. “financial institutions agreement” means the initial financial institutions agreement or, if that agreement is amended or affected by another agreement, that agreement as so amended or affected. “financial institutions legislation” has the meaning given by section 8. “financial institutions scheme” has the meaning given by section 6. “fiscal bodies legislation” means— (a) the financial institutions legislation; and (b) the friendly societies legislation. “fiscal body” means— (a) a financial institution; or (b) a friendly institution. “friendly association” means a body formed by friendly societies and registered under the friendly societies legislation as an association. “friendly institution” means— (a) a friendly society; or (b) a friendly association. “friendly societies legislation” has the meaning given by section 8A.

s 3 12 s 3 Australian Financial Institutions Commission Code “friendly society” means a body that is registered under the friendly societies legislation as a society. “group” means an economic entity of which a fiscal body is a part. “initial financial institutions agreement” has the meaning given by section 7. “inspector” means a person authorised under section 53 (Inspectors). “Interstate Consultative Committee” means the Interstate Consultative Committee established under the financial institutions agreement. “ISC” means the Insurance and Superannuation Commissioner under the InsuranceandSuperannuationCommissionerAct1987 of the Commonwealth. “Ministerial Council” means the Ministerial Council established under the financial institutions agreement. “non-presiding member” , in relation to the Appeals Tribunal, means a member of the Appeals Tribunal other than the chairperson or a deputy chairperson. “participating State” means a State that is a party to the financial institutions agreement. “PHIAC” means the Private Health Insurance Administration Council under the National Health Act 1953 of the Commonwealth. “presiding member” , in relation to the Appeals Tribunal, means the chairperson or a deputy chairperson of the Appeals Tribunal. “prudential standard” includes— (a) a standard relating to all or any of the following matters in relation to fiscal bodies— (i) capital adequacy; (ii) liquidity; (iii) large exposures; (iv) doubtful and non-performing debts; (v) guarantees;

s 3 13 s 3 Australian Financial Institutions Commission Code (vi) borrowings; (vii) charges and securities; (viii)ownership and control; (ix) prohibited investments; (x) risk management systems; (xi) obligations of directors in relation to financial affairs; (xii) representation of bodies that are part of the same group on boards of directors; (xiii)management contracts; (xiv)the structure of, and relationship between, bodies that are part of groups; (xv) transactions and agreements between bodies that are part of groups; (xvi)disclosure documents; or (b) any standard relating to the financial stability of fiscal bodies; or (c) a standard relating to the interpretation, administration, enforcement or supervision of a standard mentioned in paragraph (a) or (b). “RBA” means the Reserve Bank of Australia. “society” means (other than in the definition “friendly society”)— (a) a building society; or (b) a credit union; or (c) any other body registered under the financial institutions legislation as a society. “special services provider” means a body that is registered under the financial institutions legislation as a special services provider. “standard” means a standard in force under section 28 (Making etc. of standards). “State” includes a Territory.

s 4 14 s 5 Australian Financial Institutions Commission Code “State supervisory authority” , in relation to a State, means— (a) to the extent that a provision of this Code in which the expression appears applies, or is applied, to a financial body—the person or body declared by the financial institutions legislation of the State to be the State supervisory authority for the State; and (b) to the extent that a provision of this Code in which the expression appears applies, or is applied, to a friendly institution—the person or body declared by the friendly societies legislation of the State to be the State supervisory authority for the State. “Tribunal” means the Australian Financial Institutions Appeals Tribunal. ˙ Interpretation—words etc. used in Financial Institutions Code or Friendly Societies Code 4. Unless the contrary intention appears, words and expressions used in the Financial Institutions Code or Friendly Societies Code have the same respective meanings in this Code. ˙ Interpretation—meaning of making a decision 5. A reference in this Code to the making of a decision includes a reference to— (a) making, suspending, revoking or refusing to make an order or determination; or (b) giving, suspending, revoking or refusing to give a certificate, direction, approval, consent or permission; or (c) issuing, suspending, revoking or refusing to issue a licence, authority or other instrument; or (d) imposing a condition or restriction; or (e) making a declaration, demand or requirement; or (f) retaining, or refusing to deliver up, an article; or (g) doing or refusing to do anything else.

s 6 15 s 8 Australian Financial Institutions CommissionCode PART 2—THE FINANCIAL INSTITUTIONS SCHEME AND ITS MAIN ELEMENTS Division 1—General ˙ The financial institutions scheme 6.(1) There is to be a financial institutions scheme for fiscal bodies. (2) The financial institutions scheme is the scheme established and implemented by the financial institutions agreement and the fiscal bodies legislation. ˙ Initial financial institutions agreement 7.(1) The initial financial institutions agreement is the financial institutions agreement made on 22 November 1991 between the States and Territories. (2) A copy of the provisions of the initial financial institutions agreement is set out in the Schedule. ˙ Financial institutions legislation 8. The financial institutions legislation consists of— (a) the financial institutions legislation of Queensland, namely— (i) the AFIC Act, and the AFIC Code set out in section 21 of the Act; and (ii) the FinancialInstitutions(Queensland)Act1992 of Queensland, and the Financial Institutions Code set out in section 30 of the Act; and (iii) regulations made under either of those Acts; and (b) the financial institutions legislation of the other participating States, namely— (i) the Acts and regulations of the other participating States that

s 8A 16 Australian Financial Institutions CommissionCode s9 apply, complement or otherwise give effect to any part of the financial institutions legislation of Queensland; and (ii) the financial institutions legislation of Queensland as applying in those States. ˙ Friendly societies legislation 8A. The friendly societies legislation consists of— (a) the friendly societies legislation of Victoria, namely— (i) the Friendly Societies (Victoria) Act 1996 of Victoria and the Friendly Societies Code set out in schedule 1 of the Act; and (ii) regulations made under the Act; and (b) the friendly societies legislation of the other participating States, namely— (i) the Acts and regulations of the other participating States that apply, complement or otherwise give effect to any part of the friendly societies legislation of Victoria; and (ii) the friendly societies legislation of Victoria as applying in those States; and (c) the financial institutions legislation in so far as it applies or is otherwise relevant to the legislation mentioned in paragraph (a) or (b). ˙ Principal object of financial institutions scheme and its achievement 9.(1) The principal objects of the financial institutions scheme are— (a) to protect and promote the financial integrity and the efficiency of the State-based fiscal bodies system; and (b) to protect the interests of depositors with societies; and (c) to protect the interests of members and prospective members of friendly society benefit funds. (2) It is the intention of the participating States that the principal objects should be achieved principally by—

s 9 17 s 9 Australian Financial Institutions Commission Code (a) establishing systems of prudential and other standards for, and for the supervision of, fiscal bodies that is uniform throughout Australia; and (b) maintaining confidence in fiscal bodies; and (c) encouraging strong, stable and competitive fiscal bodies; and (d) enabling fiscal bodies to operate efficiently on an Australia-wide basis; and (e) approving and supervising special services providers; and (f) supervising and controlling industry funded liquidity support arrangements for societies; and (g) establishing a Ministerial Council to oversight generally the operation of the fiscal bodies legislation; and (h) establishing the Australian Financial Institutions Commission to institute, develop and ensure the effective and efficient implementation of, uniform systems of prudential and other standards for, and for the supervision of, fiscal bodies; and (i) establishing independent State supervisory authorities to undertake day-to-day supervision, administration and enforcement of the uniform systems; and (j) establishing the Interstate Consultative Committee to ensure effective liaison between State supervisory authorities; and (k) ensuring that AFIC and State supervisory authorities are adequately and appropriately funded to achieve the principal objects of the financial institutions scheme; and (l) obtaining for, and for the ongoing implementation of, the financial institutions scheme, the cooperation of the Commonwealth and of the following entities— (i) ASC; (ii) COFS; (iii) ISC;

s 10 18 s 10 Australian Financial Institutions Commission Code (iv) PHIAC; (v) RBA. ˙ Principles of supervision 10.(1) It is the intention of the Legislature of this State that the following principles should be applied in the supervision of fiscal bodies— (a) Recognition of role of fiscal bodies . Fiscal bodies have an important, on-going role in the Australian financial system that needs to be recognised and fostered. (b) Management responsibility . Responsibility for the financial success and viability of fiscal bodies rests with their boards and management, not with governments or supervisors. (c) Effective supervision . There is a need for prudential supervision of fiscal bodies that is effective. (d) Approach to supervision . Supervision should be aimed at the prevention of problems. . Supervision should be based on prudential standards and reporting and disclosure requirements. . Reliable monitoring of the practices and procedures of fiscal bodies, use of external auditors, regular review of overall policy and performance with boards of directors of fiscal bodies, and on-site inspections, should form the key features of supervision arrangements. . As a general rule, supervision arrangements should not shift responsibility from the boards and management of fiscal bodies. (e) Uniform standards . Supervisory arrangements should be uniform across States.

s 11 19 s 11 Australian Financial Institutions Commission Code (f) Flexibility . Supervisory arrangements should be flexible in order to adapt to changes in the financial system and to experience acquired in the conduct of supervision. (g) Competition . Competition should be fostered by ensuring that, to the maximum extent possible, all fiscal bodies compete on an equitable basis with each other and with other bodies in the financial system. . Fiscal bodies that meet the requirements of the financial institutions scheme should be enabled to operate on a national basis. (h) Funding . For prudential supervision to be effective, supervisory authorities need to be adequately resourced. . The on-going cost of supervision should primarily be borne by fiscal bodies and not governments. . Funding should be determined on an equitable basis, both between types of fiscal bodies and between individual fiscal bodies. . Funding arrangements should be determined in consultation with industry bodies. (2) The principles do not have the force of law and are subject to the other provisions of the fiscal bodies legislation. ˙ Role of State supervisory authorities 11. It is the role of State supervisory authorities to— (a) register and supervise financial bodies and friendly institutions; and (b) undertake the administration and enforcement of the financial institutions scheme except so far as it relates to special services providers; and

s 12 20 s 14 Australian Financial Institutions Commission Code (c) assist AFIC to monitor the compliance of financial institutions with the requirements of, and standards relating to, industry funded liquidity support arrangements for societies; and (d) protect the interests of depositors and members of societies and of members of friendly society benefit funds. Division 2—Operation of fiscal bodies legislation ˙ Extraterritorial operation of legislation 12. The fiscal bodies legislation applies— (a) throughout Australia; and (b) both within and outside Australia. ˙ Fiscal bodies legislation binds the Crown 13.(1) The fiscal bodies legislation binds the Crown in right of this State and, so far as the legislative power of the Legislature of this State permits, the Crown in all its other capacities. (2) Nothing in this section permits the Crown in any of its capacities to be prosecuted for an offence. PART 3—AFIC AND ITS BOARD Division 1—Establishment and general functions and powers of AFIC ˙ Establishment of AFIC 14. The Australian Financial Institutions Commission is the commission established by section 4 of the AFIC Act.

s 15 21 s 15 Australian Financial Institutions Commission Code ˙ Functions 15. The functions of AFIC are to— (a) promote on a national basis the financial integrity and the efficiency of the State-based fiscal bodies system; and (b) institute, develop, and ensure the effective and efficient implementation of, systems of prudential and other standards for, and for the supervision of, fiscal bodies that are uniform throughout Australia; and (c) collect information and statistics, publish reports, and disseminate information relating to— (i) fiscal bodies; and (ii) the operation, administration and enforcement of the financial institutions scheme; and (d) register and supervise special services providers; and (e) supervise and control industry funded liquidity support arrangements for societies; and (f) undertake the administration and enforcement of the financial institutions scheme so far as it relates to special services providers and industry funded liquidity support arrangements for societies; and (g) advise, and make recommendations to, the Ministerial Council in relation to— (i) changes to the fiscal bodies legislation; or (ii) new laws, and changes to other existing laws, relating to or affecting fiscal bodies; and (h) institute, administer and develop a system for the reservation and allocation on a national basis of names of fiscal bodies; and (i) carry out such other functions as are conferred on it by or under the fiscal bodies legislation.

s 16 22 s 18 Australian Financial Institutions Commission Code ˙ General powers 16.(1) AFIC has power to do all things necessary or convenient to be done for, or in connection with, the performance of its functions. (2) Without limiting subsection (1), AFIC has such powers as are conferred on it by or under the fiscal bodies legislation. (3) Without limiting subsection (1), AFIC has, for or in connection with the performance of its functions, all the powers of a natural person, and may, for example— (a) enter into contracts; and (b) acquire, hold and dispose of property; and (c) appoint agents and attorneys; and (d) make charges, and fix terms and conditions, for services and information supplied by it; and (e) engage consultants. (4) Without limiting subsection (1), AFIC may give indemnities to its directors and employees. ˙ AFIC is body corporate etc. 17. Under section 5 of the AFIC Act, the Australian Financial Institutions Commission— (a) is a body corporate; and (b) has a seal; and (c) may sue and be sued in its corporate name. ˙ AFIC independent body 18. Except as expressly provided in the fiscal bodies legislation, AFIC is not subject to direction by or on behalf of the Ministerial Council or any government.

s 19 23 s 23 Australian Financial Institutions Commission Code ˙ AFIC to comply with financial institutions agreement etc. 19. In performing its functions and exercising its powers, AFIC must— (a) comply with any applicable provisions of the financial institutions agreement; and (b) strive to ensure that the principal objects of the financial institutions scheme are achieved. ˙ Place of principal office 20. The principal office of AFIC is to be in Brisbane. ˙ AFIC does not represent Crown 21. AFIC does not represent the Crown. ˙ AFIC exempt public authority under Corporations Law 22. Under section 6 of the AFIC Act, AFIC is an exempt public authority for the purposes of the Corporations Law of Queensland. ˙ Consultation 23. In performing its functions and exercising its powers, AFIC must, where it is appropriate and practicable to do so, consult with the Commonwealth, State supervisory authorities, industry bodies and fiscal bodies, and also with the following entities— (a) ASC; (b) COFS; (c) ISC; (d) PHIAC; (e) RBA.

s 24 24 s 27 Australian Financial Institutions CommissionCode Division 2—Establishment and composition of AFIC’s Board ˙ The Board 24. Under section 7 of the AFIC Act, there is a board of directors of AFIC. ˙ Composition of the Board 25. The Board consists of the following directors— (a) the chairperson; (b) the deputy chairperson; (c) the executive director; (d) up to 6 other directors. ˙ Role of the Board 26. It is the role of the Board— (a) to decide the objectives, strategies and policies to be followed by AFIC; and (b) to ensure that AFIC performs its functions in a proper and efficient way. ˙ Duties of executive director 27.(1) The executive director is, under the Board, to manage AFIC. (2) Anything done in the name of, or on behalf of, AFIC by the executive director is taken to have been done by AFIC.

s 28 25 s 28 Australian Financial Institutions CommissionCode PART 4—STANDARDS ˙ Making etc. of standards 28.(1) The Board may, by resolution, make standards (whether prudential or otherwise) with respect to— (a) the business and affairs of fiscal bodies; and (b) industry funded liquidity support arrangements for societies; and (c) the supervision of fiscal bodies by State supervisory authorities, including the practices and procedures to be adopted in carrying out that supervision; and (d) the administration and enforcement by State supervisory authorities of the financial institutions scheme so far as it relates to fiscal bodies; and (e) the administration and enforcement by AFIC of the financial institutions scheme so far as it relates to special services providers and industry funded liquidity support arrangements for societies; and (f) any other matters in relation to which the fiscal bodies legislation authorises or requires (whether expressly or by implication) standards to be made; and (g) any other matters in relation to fiscal bodies that the Board considers necessary or desirable for the achievement of the principal objects of the financial institutions scheme. (2) The Board may, by resolution, amend or repeal a standard made under this section. (3) A resolution under this section takes effect from— (a) the day a copy of the resolution is published in the Queensland Government Gazette; or (b) such later day as is specified in the resolution.

s 29 26 s 29 Australian Financial Institutions Commission Code ˙ Procedures before making of standards 29.(1) A standard must not be made, amended or repealed under section 28 (Making etc. of standards) unless this section or section 30 (Urgent standards) is complied with in relation to the resolution by which the standard is to be made, amended or repealed. (2) The Board must, not later than 60 days before the passing of the resolution— (a) give each State supervisory authority a notice explaining succinctly the purpose, and intended operation, of the resolution; and (b) publish a notice in the Queensland Government Gazette, and in a newspaper circulating generally in each of the participating States, explaining succinctly the purpose, and intended operation, of the resolution. (3) A notice under subsection (2) is to invite— (a) written suggestions on the proposed resolution to be given to AFIC within 30 days after publication of the Queensland Government Gazette notice; and (b) written comments on those suggestions to be given to AFIC within 21 days after the end of that period of 30 days. (4) AFIC must— (a) make copies of each suggestion and comment given to it available for inspection and purchase at its principal office; and (b) take reasonable steps to ensure that copies of each suggestion and comment given to it are available for inspection and purchase at all offices of State supervisory authorities. (5) AFIC must comply with subsection (4) in relation to a suggestion or comment as soon as practicable after the suggestion or comment is given to it. (6) The Board must consider all suggestions and comments given to it under this section before passing the resolution, and may alter the terms of the proposed resolution to take account of suggestions and comments.

s 30 27 s 32 Australian Financial Institutions Commission Code (7) Contravention of this section in relation to a resolution does not affect the validity of the resolution. ˙ Urgent standards 30.(1) If the Board determines that it is necessary, because of urgent circumstances, for a resolution making, amending or repealing a standard to be passed without complying with section 29 (Procedures before making of standards), the Board may pass that resolution. (2) When the Board makes a determination under subsection (1), it must immediately publish a copy of the determination in the Queensland Government Gazette, together with a succinct statement of its reasons for making the determination. (3) A resolution made by virtue of a determination under subsection (1) has effect for only 120 days or, if a lesser period is specified in the resolution, that period. ˙ Application of changed requirements 31.(1) A standard may provide that its operation in relation to a particular fiscal body may be varied by a State supervisory authority by temporarily changing a requirement of the standard as allowed under the standard. (2) This section does not limit by implication section 28 (Making etc. of standards). ˙ Transitional arrangements 32.(1) A standard that imposes requirements, or increases the requirements already imposed by a standard, may make transitional provision for the purpose of allowing additional time to comply with the requirements. (2) This section does not limit by implication section 28 (Making etc. of standards).

s 33 28 s 34 Australian Financial Institutions Commission Code ˙ Matters for which standards may make provision 33.(1) A standard may make provision with respect to a matter by applying, adopting or incorporating (with or without modification) provisions of— (a) any law of the Commonwealth, a State or a foreign country; or (b) any document. (2) If a standard makes provision with respect to a matter by applying, adopting or incorporating provisions of a law or document, the provisions as in force at that time are to be attached to the resolution by which the standard is made, and are taken to be incorporated in the standard. (3) A standard may— (a) apply generally to all persons, matters and things or be limited in its application to particular persons, matters and things; and (b) otherwise apply generally or be limited in its application by reference to specified exceptions or factors. (4) A standard may— (a) apply differently according to different specified factors; or (b) otherwise make different provision in relation to different persons, matters or things. (5) A standard may authorise any matter or thing to be from time to time determined, applied or regulated by any specified person or body. (6) A standard may make provision with respect to a particular aspect of a matter despite the fact that provision is made by the fiscal bodies legislation in relation to another aspect of the matter or in relation to another matter. ˙ Publication of standards 34.(1) When the Board makes a resolution for the purposes of section 28 (Making etc. of standards), it must immediately— (a) publish a copy of the resolution in the Queensland Government Gazette; and

s 35 29 s 35 Australian Financial Institutions Commission Code (b) notify each State supervisory authority of the making of the resolution and give each State supervisory authority a copy of the resolution and a summary of its terms; and (c) publish a notice— (i) notifying the making of the resolution; and (ii) explaining succinctly the purpose, and intended operation, of the resolution; in a newspaper circulating generally in each of the participating States; and (d) if the resolution affects a special services provider or industry funded liquidity support arrangements for societies—give a copy of the summary to the financial institutions affected. (2) When a State supervisory authority receives the summary under subsection (1), it must immediately give a copy of it to each fiscal body affected by the resolution for whose supervision it is responsible under the financial institutions scheme. (3) AFIC must take reasonable steps to ensure that copies of the resolution are available for inspection and purchase at all offices of AFIC and State supervisory authorities. (4) Contravention of this section in relation to a resolution does not affect the validity of the resolution. ˙ No discrimination on ground of connection with particular States 35. A standard must not discriminate between fiscal bodies on the ground of their connection with particular States.

s 36 30 s 36 Australian Financial Institutions CommissionCode PART 5—SPECIAL SERVICES PROVIDERS ˙ Registration of special services providers 36.(1) A body may apply to AFIC, in accordance with the regulations, to be registered under this Code as a special services provider. (2) A body is eligible for registration as a special services provider only if— (a) the application for registration complies with this Code; and (b) the body will, after registration, provide only services of the following kinds— (i) providing treasury management services to societies; (ii) receiving deposits from societies; (iii) investing funds of societies in liquid assets; (iv) providing loans or financial accommodation to societies; (v) establishing lines of credit or obtaining financial accommodation; (vi) services approved in writing for the body by AFIC, whether before or after registration; and (c) 2 or more societies, between them, will, after registration— (i) control the composition of the board of directors of the body; or (ii) be in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the body; or (iii) hold more than 50% of the issued share capital of the body (other than any part of the issued share capital that carries no right to participate beyond a specified amount in the distribution of either profits or capital). (3) The application must be accompanied by— (a) the body’s rules; and

s 37 31 s 37 Australian Financial Institutions Commission Code (b) such documents as are prescribed; and (c) such evidence as AFIC requires— (i) that the body is eligible for registration as a special services provider; and (ii) that the body, if registered, will be able to carry out its objects and to comply with all applicable standards. (4) AFIC may, for the purposes of this section, accept a statutory declaration as sufficient evidence of matters mentioned in the declaration. (5) AFIC must register the body as a special services provider, and register its proposed rules, if AFIC is satisfied that— (a) the body is eligible for registration; and (b) its proposed rules are not contrary to the financial institutions legislation; and (c) the body will, if registered, be able to comply with all applicable standards; and (d) the body will, if registered, be able to carry out its objects successfully. ˙ Certificate of incorporation 37.(1) On registering a special services provider under this Part, AFIC must— (a) if the special services provider is a company within the meaning of the Corporations Law— (i) issue a certificate that the special services provider is incorporated under this Code; and (ii) give notice of the issuing of the certificate to the Australian Securities Commission; and (iii) give notice of the issuing of the certificate in the Gazette; or (c) in any other case—issue a certificate of incorporation to the special services provider.

s 38 32 s 40 Australian Financial Institutions Commission Code (2) A certificate of incorporation is conclusive evidence that all requirements of this Code in relation to registration and matters precedent or incidental to registration have been complied with. ˙ Effect of incorporation 38. On the issue under this Part of a certificate of incorporation to a special services provider, the special services provider is a body corporate with perpetual succession and— (a) has, subject to this Code and its rules, the legal capacity of a natural person; and (b) has a common seal; and (c) may sue and be sued in its corporate name. ˙ Effect of incorporation on certain bodies 39.(1) On notice of the issuing of a certificate of incorporation being given under section 37(1)(a) (Certificate of incorporation)— (a) the company is taken to be incorporated under this Code instead of the Corporations Law and its registration as a company under that law is cancelled; and (b) the property of the company vests in the new body incorporated under this Code without any conveyance, transfer or assignment but subject to any debt or liability affecting the property; and (c) the debts and liabilities of the company become the debts and liabilities of the new body. (2) This section has effect despite any law of this State prescribed for the purpose of this subsection. ˙ Application of Financial Institutions Code 40. The prescribed provisions of the Financial Institutions Code apply, with all necessary modifications and any prescribed modifications, to a special services provider and to AFIC as if—

s 41 33 s 43 Australian Financial Institutions Commission Code (a) the special services provider were a society; and (b) AFIC were the State supervisory authority. ˙ Special services providers to comply with standards 41. A special services provider must comply with all applicable standards. Maximum penalty—$25 000. PART 6—INDUSTRY FUNDED LIQUIDITY SUPPORT ARRANGEMENTS FOR SOCIETIES ˙ Object of Part 42. The object of this Part is to empower AFIC to cause— (a) building societies to provide liquidity support, on a pro rata basis, to a building society in an emergency situation; and (b) credit unions to provide liquidity support, on a pro rata basis, to a credit union in an emergency situation. ˙ Definition 43. In this Part— “eligible society” means— (a) if the society in relation to which the relevant determination under section 44 (Determination that liquidity support necessary) applies is a building society—a building society; or (b) if the society in relation to which the relevant determination under section 44 applies is a credit union—a credit union; but does not include— (c) a society under external administration under Part 9 of the

s 44 34 s 45 Australian Financial Institutions Commission Code Financial Institutions Code; or (d) a society in relation to which a determination under section 44 has been made if any loan to which section 46 (Provision of liquidity support) applies has not been repaid; or (e) a society that does not comply with a prime liquid assets ratio requirement that applies to it under a standard; unless AFIC determines, by written notice given to the society, that the society is an eligible society. ˙ Determination that liquidity support necessary 44. Subject to section 45 (Restrictions on making determination), the Board may, by resolution, determine that liquidity support is necessary for a building society or credit union (in this Part called the “borrowing society” ). ˙ Restrictions on making determination 45.(1) The Board must not make a determination under section 44 (Determination that liquidity support necessary) unless it is of the opinion, after making such investigations and taking into account such matters as it considers appropriate, that the borrowing society is able to provide adequate security for any loan to be made to it for the purposes of liquidity support. (2) The Board must not make a determination under section 44 unless it is of the opinion, after consultation with the relevant State supervisory authority and after making such investigations and taking into account such matters as it considers appropriate, that the value of the borrowing society’s assets is greater than the value of its liabilities. (3) The Board must not make a determination under section 44 unless the Board has made a standard that makes provision in relation to— (a) the maximum aggregate amount of all payments that a society may at any given time be required to make for the purposes of liquidity support (not being an amount of more than 50% of the difference between the value of the assets that satisfy the prime liquid assets requirement for the society (as defined by a

s 46 35 s 46 Australian Financial Institutions Commission Code standard) and any payments previously made by the society for the purposes of liquidity support and not repaid to the society); and (b) the calculation of that maximum aggregate amount; and (c) the way of determining the respective amounts eligible societies are required to provide in relation to a society for the purposes of liquidity support (being a way that is based on the value of the total assets (as defined by a standard) of each eligible society); and (d) the obligation of each society to identify assets that are to be retained unencumbered for the purpose of providing security if liquidity support is provided to the society (other than by security in favour of a special services provider, of which the society is a member, to facilitate the provision of liquidity support by the special services provider); and (e) the arrangements under which security taken from a society will be held for the benefit of societies that provide liquidity support to the society; and (f) what constitutes adequate security for the purposes of this section; and (g) the valuation of assets for the purposes of liquidity support. ˙ Provision of liquidity support 46.(1) If the Board makes a determination under section 44 (Determination that liquidity support necessary), AFIC may, by written notice given to each eligible society, direct the society to make loans, on a pro rata basis with other eligible societies, to the borrowing society, on adequate security and otherwise on such terms and conditions as are specified in the notice. (2) If— (a) the Board makes a determination under section 44; and (b) a society (the “lending society” ) has provided liquidity support otherwise than on a pro rata basis with other eligible societies by

s 46 36 s 46 Australian Financial Institutions Commission Code making a loan to the borrowing society on adequate security and otherwise on terms and conditions that AFIC regards as appropriate; AFIC may, by written notice given to each eligible society (other than the lending society), require the eligible society to reimburse the lending society, on a pro rata basis with other eligible societies and within a specified time, any amount by which the amount of the loan made by the lending society exceeds the amount of the loan that the lending society would have been required to make to the borrowing society if AFIC had directed all eligible societies (including the lending society) to make loans under subsection (1). (3) If— (a) the Board makes a determination under section 44; and (b) a special services provider provides liquidity support by making a loan to the borrowing society on adequate security and otherwise on terms and conditions that AFIC regards as appropriate; AFIC may, by written notice given to each eligible society, require the eligible society to reimburse the special services provider, on a pro rata basis with other eligible societies and within a specified time, the amount of the loan made by the special services provider to the borrowing society. (4) An eligible society that complies with subsection (2) or (3) is entitled to the benefit of any relevant loan agreement with the borrowing society, and to the benefit of all security provided by the borrowing society for the loan concerned, in the proportion that the eligible society’s payment bears to the total amount of the loans made to the borrowing society for the purposes of liquidity support, as if the eligible society were an equitable assignee in that proportion of the rights and interest of the lenders to the borrowing society. (5) AFIC may, by written notice given to each eligible society (other than a society (a “defaulting society” ) that has failed to comply with a direction under subsection (1) or a requirement under subsection (2) or (3) in relation to the borrowing society), require the eligible society to perform, on a pro rata basis with other eligible societies that are not defaulting societies and within a specified time, the obligation of a defaulting society under this section.

s 46A 37 Australian Financial Institutions CommissionCode s 46A (6) A society that makes a loan to the borrowing society for the purposes of liquidity support otherwise than on a pro rata basis under subsection (2), a special services provider that makes a loan to the borrowing society as mentioned in subsection (3), and an eligible society that makes a payment under subsection (5) in relation to the borrowing society, has a right of contribution against a defaulting society for a part of the amount, determined on a pro rata basis with other eligible societies that are not defaulting societies, that the defaulting society failed to pay. (7) A society that fails to comply with a direction or requirement under this section commits an offence. Maximum penalty—$75 000. ˙ Certain applied provisions not effective 46A.(1) This section applies to the extent that, because of an applied provision, a charge on property of, or a liquidity support loan made to, a borrowing society would otherwise be void or voidable, either generally or as against a particular person. (2) To that extent, the applied provision is ineffective. (3) In this section— “a charge on property of a borrowing society” means a charge given, or available, as security over property of the society in relation to a liquidity support loan made to the society. “applied provision” means— (a) for a charge on property of a borrowing society— (i) the Corporations Law, section 266 or 267, as applying under the Financial Institutions Code, section 227; 1 or (ii) the Corporations Law, section 588FJ, as applying under the 1 This section of the Financial Institutions Code applies the CorporationsLaw, part 3.5 (Charges) to societies with all necessary and prescribed modifications.

s 46B 38 Australian Financial Institutions CommissionCode s 47 Financial Institutions Code, section 342; 2 or (b) for a charge on property of, or a liquidity support loan made to, a borrowing society—the CorporationsLaw, section 588FE, as applying under the Financial Institutions Code, section 342. “liquidity support loan” , in relation to a borrowing society, means a loan made to the society for the purposes of liquidity support consequent on a determination of the Board under section 44. ˙ Limitation on court’s power to make order 46B.(1) If, because of section 46A, a transaction that would otherwise be voidable because of section 588FE is not voidable, a court cannot be satisfied, for the purposes of section 588FF, that the transaction is voidable. (2) This section is to remove doubt. (3) In this section— “section 588FE” means that section of the Corporations Law as applying under the Financial Institutions Code, section 342. “section 588FF” means that section of the Corporations Law as applying under the Financial Institutions Code, section 342. ˙ AFIC to encourage special services providers to facilitate liquidity support 47. AFIC must, unless it would be inappropriate to do so, encourage special services providers to assist it in the exercise of its powers under this 2 This section of the Financial Institutions Code applies the following provisions of the CorporationsLaw, with all necessary and prescribed modifications, to the winding-up or dissolution of a society or to a defunct or dissolved society— • part 5.4 (Winding up in insolvency) • part 5.4A (Winding up by the Court on other grounds) • part 5.4B (Winding up in insolvency or by the Court) • part 5.5 (Voluntary winding up) • part 5.6 (Winding up generally) • part 5.7B (Recovering property or compensation for the benefit of creditors of insolvent company) (other than section 588G) • part 5.9 (Miscellaneous)

s 47A 39 Australian Financial Institutions CommissionCode s 47B Part, and otherwise to facilitate the provision of liquidity support to societies. PART 6A—NAMES ˙ Reference to registration of fiscal body’s name 47A. In this part, a reference to registration of a fiscal body’s name is a reference to— (a) if the fiscal body is a financial body—registration by the SSA, under the Financial Institutions Code, of— (i) a financial body’s rules containing the name; or (ii) an alteration of a financial body’s rules to contain the name; or (b) if the fiscal body is a friendly institution—registration by the SSA, under the Friendly Societies Code, of— (i) a friendly institution’s rules containing the name; or (ii) an alteration of a friendly institution’s rules to contain the name; or (c) if the fiscal body is a special services provider—registration by AFIC, under this Code, of— (i) a special services provider’s rules containing the name; or (ii) an alteration of a special services provider’s rules to contain the name. ˙ Fiscal body must have certain words as part of name 47B.(1) The name of a building society must include the words ‘building society’ as part of its name. (2) The name of a credit union must include the words ‘credit union’, ‘credit society’ or ‘credit co-operative’ as part of its name.

s 47BA 40 Australian Financial Institutions CommissionCode s 47BA (3) The name of a friendly society must include the words ‘friendly society’ as part of its name. (4) The name of a fiscal body must include the word ‘Limited’ or the abbreviation ‘Ltd.’ at the end of its name. ˙ Approval of name for use 47BA.(1) AFIC may, on application by a fiscal body, approve the use by the fiscal body of a name other than its registered name subject to the conditions AFIC decides. (2) However, AFIC may give approval under subsection (1) only if— (a) it first consults with the State supervisory authority with which the fiscal body’s rules are registered; and (b) the name the fiscal body wishes to use is reserved for the fiscal body by AFIC under this part. (3) AFIC may, by written notice given to a fiscal body, revoke an approval given to the fiscal body under subsection (1) or vary or revoke conditions to which it is subject. (4) If, other than in relation to a special services provider, AFIC gives an approval under subsection (1), revokes an approval under subsection (3) or varies or revokes conditions to which an approval is subject, AFIC must, as soon as practicable, notify each State supervisory authority of the approval, revocation or variation. (5) A fiscal body must comply with the conditions of an approval under subsection (1). Maximum penalty—$75 000. (6) An approval given under the Financial Institutions Code, section 139(5) (Name) before the commencement of this section, and still in force immediately before the commencement, is taken, for all purposes under the financial institutions legislation, to be an approval given under subsection (1). (7) Subsection (2)(a) does not apply if the applicant under subsection (1) is a special services provider.

s 47C 41 Australian Financial Institutions CommissionCode s 47C ˙ Reservation of names 47C.(1) A person may apply in writing to AFIC to reserve a specified name as— (a) the name for a proposed fiscal body; or (b) the new name for a fiscal body; or (c) the name under which a society proposes to carry on business as a foreign society under the Financial Institutions Code; or (d) the name under which a friendly society proposes to carry on business as a foreign society under the Friendly Societies Code; or (e) a name, other than its registered name, a fiscal body proposes to use if approved under section 47BA (Approval of name for use). (2) If the name is available to the fiscal body or proposed fiscal body, AFIC must reserve it for 2 months. (3) For the purpose of this section, a name is available to a fiscal body or proposed fiscal body unless the name— (a) is reserved for another fiscal body or proposed fiscal body under the fiscal bodies legislation; or (b) is registered for another fiscal body under the fiscal bodies legislation; or (c) has been approved for use by another fiscal body under section 47BA (Approval of name for use) or the corresponding provision of the fiscal bodies legislation of another participating State; or (d) is reserved or registered for a body corporate under the Corporations Law; or (e) is on the national business names register; or (f) is likely to be confused with a name mentioned in paragraphs (a) to (e); or (g) does not comply with section 47B (Fiscal body must have certain words as part of name); or

s 47D 42 Australian Financial Institutions CommissionCode s 47F (h) is, in AFIC’s opinion, undesirable. (4) In subsection (3)(a) to (c)— “fiscal body” or “proposed fiscal body” includes a fiscal body or proposed fiscal body under the fiscal bodies legislation of another participating State. ˙ Extension of reservation 47D. On application by the person who applied for reservation of a name, AFIC may, before the end of the period for which the name is reserved (or the period as previously extended), grant 1 or more extensions of the period. ˙ End of reservation 47E. A name stops being reserved for a fiscal body or proposed fiscal body when— (a) under the fiscal bodies legislation, the name becomes the registered name of the fiscal body; or (b) the name is approved for use under section 47BA (Approval of name for use) or the corresponding provision of the fiscal bodies legislation of another participating State; or (c) AFIC cancels the reservation of the name at the request of the person who applied for reservation; or (d) the period (or extended period) of reservation ends. ˙ AFIC may direct change of name or revoke approval of name 47F.(1) If, through inadvertence or otherwise, the circumstances mentioned in subsection (2) arise, AFIC may— (a) direct a fiscal body to change its name; or (b) revoke an approval given to a fiscal body under section 47BA (Approval of name for use). (2) The circumstances are that AFIC is satisfied that the fiscal body’s

s 47F 43 Australian Financial Institutions CommissionCode s 47F name, or a name approved for use by the fiscal body under section 47BA, is likely to be confused with— (a) a name approved for use by another fiscal body under section 47BA or the corresponding provision of the fiscal bodies legislation of another participating State; or (b) another fiscal body’s name; or (c) a body corporate’s name; or (d) a name on the national business names register. (3) A fiscal body must comply with a direction under subsection (1). Maximum penalty—$25 000. (4) A direction under subsection (1) may state that it is to be implemented— (a) immediately; or (b) if AFIC considers a staged implementation is reasonable in the circumstances of the direction or revocation—in the way directed by AFIC. (5) A revocation under subsection (1) may be expressed to have effect— (a) immediately; or (b) if AFIC considers that, in the circumstances, the revocation should have effect from a later time—a later time. (6) In subsection (2)(a) and (b)— “fiscal body” includes a fiscal body under the fiscal bodies legislation of another participating State.

s 48 44 s 49 Australian Financial Institutions CommissionCode PART 7—PROVISIONS RELATING TO STATE SUPERVISORY AUTHORITIES ˙ Obtaining information from State supervisory authorities 48.(1) AFIC may, by written notice given to a State supervisory authority, require the authority— (a) to give to it, within the time and in the way specified in the notice, specified information and reports; and (b) to give to it, at the times and in the way specified in the notice, periodic reports on specified matters; and (c) to notify it, within the time and in the way specified in the notice, if— (i) a specified event or change of circumstances happens; or (ii) the State supervisory authority becomes aware that a specified event or change of circumstances is likely to happen. (2) The State supervisory authority must ensure that a notice under subsection (1) is fully complied with, whether by, for example, requiring a financial body or friendly institution— (a) to give it information or reports; or (b) to notify it of or in relation to events or changes of circumstances. ˙ Reports to Ministerial Council etc. concerning State supervisory authorities 49.(1) If— (a) a State supervisory authority fails to supply information to AFIC that it is required to supply or, in AFIC’s opinion, otherwise contravenes the fiscal bodies legislation; or (b) a State supervisory authority, in AFIC’s opinion, contravenes or fails to give effect to a standard; or (c) a State supervisory authority fails to take action in relation to any

s 49 45 s 49 Australian Financial Institutions Commission Code matter that is, in AFIC’s opinion, adequate and appropriate in the circumstances; AFIC may inform the relevant Minister of the participating State concerned in writing of the matter. (2) Before deciding to inform that Minister, AFIC must— (a) consult with the State supervisory authority; and (b) take into account the views of the State supervisory authority in relation to the matter. (3) If AFIC provides information to a Minister of a State under subsection (1), AFIC must provide with the information any comments provided to AFIC by the State supervisory authority in relation to the matter. (4) If— (a) AFIC provides information to a Minister of the State under subsection (1); and (b) the State supervisory authority fails to take action in relation to the matter that is, in AFIC’s opinion, adequate and appropriate in the circumstances; AFIC may inform the Ministerial Council in writing of the matter. (5) If AFIC provides information to the Ministerial Council under subsection (4), AFIC must provide with the information any comments provided to AFIC by the State supervisory authority in relation to the matter. (6) If— (a) AFIC provides information to the Ministerial Council under subsection (4); and (b) the State supervisory authority fails to take action in relation to the matter that is, in AFIC’s opinion, adequate and appropriate in the circumstances; AFIC may provide a report on the matter to the Premier of the participating State concerned.

s 50 46 s 50 Australian Financial Institutions CommissionCode PART 8—ENFORCEMENT POWERS ˙ Injunctions 50.(1) If a person has engaged, is engaging or is proposing to engage in conduct that constituted, constitutes or would constitute— (a) a contravention of this Code; or (b) attempting to contravene this Code; or (c) aiding, abetting, counselling or procuring a person to contravene this Code; or (d) inducing or attempting to induce (whether by threats, promises or otherwise) a person to contravene this Code; or (e) being in any way, directly or indirectly, knowingly concerned in, or party to, the contravention by a person of this Code; or (f) conspiring with others to contravene this Code; the Supreme Court may, on the application of AFIC, a State supervisory authority or a person whose interests have been, are or would be affected by the conduct, grant an injunction restraining the person from engaging in the conduct and, if in the Court’s opinion it is desirable to do so, requiring the person to do anything. (2) If a person has failed, is failing, or is proposing to fail, to do anything that the person is required to do under this Code, the Supreme Court may, on the application of AFIC, a State supervisory authority or a person whose interests have been, are or would be affected by the failure to do the thing, grant an injunction requiring the person to do the thing. (3) If an application is made for an injunction under subsection (1) or (2), the Supreme Court may grant an injunction with the consent of all the parties to the proceeding, whether or not the Court is satisfied that the subsection applies. (4) The Supreme Court may grant an interim injunction pending determination of an application under subsection (1). (5) The Supreme Court may discharge or vary an injunction granted under this section, and may grant an injunction on conditions.

s 51 47 s 51 Australian Financial Institutions Commission Code (6) The power of the Supreme Court to grant an injunction restraining a person from engaging in conduct may be exercised— (a) whether or not it appears to the Court that the person intends to engage again, or to continue to engage, in the conduct; and (b) whether or not the person has previously engaged in conduct of that kind; and (c) whether or not there is an imminent danger of substantial damage to another person if the person engages, or continues to engage, in the conduct. (7) The power of the Supreme Court to grant an injunction requiring a person to do a thing may be exercised— (a) whether or not it appears to the Court that the person intends to fail again, or to continue to fail, to do the thing; and (b) whether or not the person has previously failed to do a thing of that kind; and (c) whether or not there is an imminent danger of substantial damage to another person if the person fails, or continues to fail, to do the thing. (8) If AFIC or a State supervisory authority applies to the Supreme Court for the grant of an injunction under this section, the Court must not require the applicant or another person, as a condition of the granting of an interim injunction, to give an undertaking as to damages. (9) If the Supreme Court has power under this section to grant an injunction restraining a person from engaging in particular conduct or requiring a person to do a particular thing, the Court may, either in addition to or in substitution for the grant of the injunction, order the person to pay damages to another person. (10) The Supreme Court’s powers under this section are in addition to its other powers. ˙ Obtaining information etc. from financial institutions 51.(1) AFIC may, if it is reasonably necessary for the purposes of—

s 51 48 s 51 Australian Financial Institutions Commission Code (a) in the case of a special services provider—the financial institutions legislation; or (b) in the case of any other financial institution—its function in relation to the supervision and control of industry funded liquidity support arrangements for societies; by written notice given to a financial institution, or a body corporate related to a financial institution, require the financial institution or body corporate— (c) to give to it, within a reasonable period and in a reasonable way specified in the notice, specified information and reports; and (d) to give to it, at the reasonable times and in a reasonable way specified in the notice, periodic reports on specific matters; and (e) to notify it, within the reasonable time and in a reasonable way specified in the notice, if— (i) a specified event or change of circumstances happens; or (ii) the financial institution or body corporate becomes aware that a specified event or change of circumstances is likely to happen. (2) A financial institution or body corporate that, without reasonable excuse, fails to comply with a requirement under subsection (1) to the extent that the financial institution or body corporate is capable of doing so commits an offence. Maximum penalty—$25 000. (3) It is not a reasonable excuse for a financial institution or body corporate to fail to comply with a requirement under subsection (1) that complying with the requirement might tend to incriminate the financial institution or body corporate. (4) The fact that information or a report or notification was given by a financial institution or body corporate under subsection (1) is not admissible in evidence against the financial institution or body corporate in a criminal proceeding (other than a proceeding in relation to the falsity of the information, report or notification) if— (a) the financial institution or body corporate before giving the information, report or notification (the “relevant action” )

s 52 49 s 52 Australian Financial Institutions Commission Code claimed that the relevant action might tend to incriminate the financial institution or body corporate; and (b) the relevant action might in fact tend to incriminate the financial institution or body corporate. ˙ Obtaining evidence 52.(1) AFIC may, if it is reasonably necessary for the purposes of the financial institutions scheme, by written notice given to a person, require the person— (a) to attend before an employee of AFIC, or a State supervisory authority, authorised for the purpose, at a reasonable time and place specified in the notice, and then and there answer questions; and (b) to produce to an employee of AFIC, or a State supervisory authority, authorised for the purpose, at a reasonable time and place specified in the notice, documents in the custody or under the person’s control. (2) An employee before whom a person attends under subsection (1)(a) may require answers to be verified or given on oath or affirmation, and either orally or in writing, and for that purpose the employee may administer an oath or affirmation. (3) The oath to be taken, or affirmation to be made, by a person for the purposes of this section is an oath or affirmation that the answers the person will give will be true. (4) An employee to whom a document is produced under subsection (1)— (a) may keep the document for 60 days or, if a prosecution for an offence against the fiscal bodies legislation of which the document may afford evidence is instituted within that period, until the completion of the proceeding for the offence and of any appeal in relation to the proceeding; and (b) while the employee has possession of the document, may take extracts from and make copies of the document, but must allow

120 Australian Financial Institutions Commission Code SCHEDULE (continued) thinks fit, confer non-voting observer status on a representative of a government that is not a party to this Agreement. (2) The representative’s observer status ceases when a member of the Council notifies the Chairperson or Secretary of the Council that the member does not support continuation of that status. Functions 505. The Council has the functions conferred on it by this Agreement and by the Financial Institutions Legislation which shall include— (a) the approval until 31 December 1992 of regulations under the Initial Legislation by unanimous vote and thereafter by majority vote; (b) the approval of Amending Legislation bringing State-based financial institutions (other than permanent building societies and credit unions) under the Financial Institutions Scheme by unanimous vote; (c) the approval of Amending Legislation (other than that specified in sub-clause (b) by majority vote; (d) the appointment of the members of the board of AFIC (other than the initial members) and the members of the Appeals Tribunal by majority vote; (e) the exercise of general oversight over AFIC. Meetings 506. (1) Meetings of the Council shall be held at such times and at such places as are from time to time decided by the Council and at least one meeting shall be held in each financial year.

121 Australian Financial Institutions Commission Code SCHEDULE (continued) (2) A meeting of the Council may be convened by any three (3) members by notice of fourteen (14) days or of such other period as may be accepted by all members for the purpose of the meeting. (3) A meeting of the Council may be held wholly or partly if all members so agree, by means of telephone, television or some other mode of communication approved for the purposes of this subclause by the Council. (4) Members of the Council who take part in a meeting specified in sub-clause (3) are taken to have been present at the meeting although they were not all present at the same place at the time when the meeting was so held. (5) Clause 503 extends to meetings referred to in subclause (3) of this clause, and references in clause 503 to attending a meeting of the Council extend to joining in the meeting in whatever way the meeting is held. (6) To the extent that this Agreement does not prescribe with respect to the following matters the Council may determine— (a) the notice of meeting to be given to its members and the manner of giving notice; and (b) the procedure at its meetings; and (c) the manner in which and by whom its decisions are recorded and the procedure for confirmation of the correctness of the record. Quorum 507. The quorum for a meeting of the Council shall be five (5) members but no matter requiring unanimous resolution may be voted on unless all the members of that Council with a right to vote in its proceedings are present or vote.

122 Australian Financial Institutions Commission Code SCHEDULE (continued) Chairperson 508. The Chairperson of a meeting of the Council shall be decided by the Council prior to or, if not previously decided, at the meeting. Voting 509. Each member of the Council has one vote and the Chairperson does not have a casting vote. 510. Except in respect of the matters provided in Clauses 202, 504(1), 505(a) and (b) a resolution will be carried by the Council by a majority of votes of all members cast on the resolution. Voting out of meetings 511. (1) Members of the Council may cast votes for a resolution referred to all members of the Council, even though the Council is not then in session, and whether or not the resolution has been considered at a meeting of the Council. (2) For the purposes of subclause (1), a vote may be cast by communicating by facsimile transmission or teleprinter, or by any other mode of communication approved by the Ministerial Council, to the Secretary of the Council or other recipient approved by the Council. (3) Clause 503 extends to voting referred to in this clause, and references in clause 503 to attending a meeting of the Council extend to joining in the business of the Council in whatever way it is conducted.

123 Australian Financial Institutions Commission Code SCHEDULE (continued) Secretariat 512. (1) The secretariat functions for the Council will be carried out by such person or persons as the Council may from time to time determine. (2) The Secretary of the Council will be the person for the time being designated as such by the Council. PART 6—INTERSTATE CONSULTATIVE COMMITTEE 601. (1) An Interstate Consultative Committee shall be established comprising one representative of each SSA. (2) The Committee shall meet on a regular basis as a forum for the exchange of information and ideas with respect to the Financial Institutions Scheme and its operation and shall make such recommendations or representations to AFIC as it sees fit. (3) The Committee may nominate two candidates for appointment to the board of AFIC and the Ministerial Council shall consider such nominations in appointing the members of the board of AFIC pursuant to Clause 505(d). PART 7—FUNDING Initial Funding 701. (1) This clause applies to the period to 31 December 1992 or such other period as the Ministerial Council may determine.

124 Australian Financial Institutions Commission Code SCHEDULE (continued) (2) The funds required for the establishment and functioning of AFIC upon approval by the Ministerial Council of the relevant budget shall be provided by the States severally in accordance with the same proportions as the estimated population of each State on 31 December 1989 as determined by the Australian Statistician under the provisions of the States Grants (General Purposes) Act 1989 of the Commonwealth Parliament bears to the total of the estimated populations of all the States on that date. Subsequent Funding 702. (1) This clause applies to any financial period subsequent to that specified in Clause 701. (2) The funds required for the functioning of AFIC upon approval by the Ministerial Council of the relevant budget shall be provided and collected (on a pro rata basis if appropriate) as specified in the Initial Legislation. PART 8—WITHDRAWAL OF PARTY Right of Withdrawal 801. (1) A party to this agreement may at any time by notice in writing to the Ministerial Council withdraw from this agreement and shall cease to be a party when the notice of withdrawal takes effect. (2) A notice of withdrawal under this clause shall take effect on a date to be specified in the notice which is not earlier than 30 June in the financial year next following the financial year in which the notice is given.

125 Australian Financial Institutions Commission Code SCHEDULE (continued) SCHEDULE BUILDING SOCIETIES Prudential Standards and Practices Recommendation Entry Requirements 1. Character . A primary objects test specifically related to purpose should apply: At all times not less than 50 per cent of group assets must be comprised of loans or investments made for residential buildings or residential development. Exemptions may be permitted on a case-by-case basis in accordance with standards. . Mutual Control: One member, one vote; members being those persons who hold membership in accordance with the rules. Exemptions allowing up to one vote to be exercised for each permanent share held by a member to be considered on a case-by-case basis in accordance with standards. Prudential Standards & Practices 2. Capital Adequacy . Adoption of the Reserve Bank’s (RBA) Group risk-weighted approach to capital adequacy. . Minimum 8 per cent risk-weighted capital comprising core and supplementary capital where supplementary must not exceed core.

126 Australian Financial Institutions Commission Code 3. Provision for Doubtful Debts 4. Liquidity SCHEDULE (continued) . Capital definition per RBA with appropriate modifications. . Risk weightings per RBA with appropriate modifications including the 50 per cent weighting for residential housing loans, secured by registered mortgage over one unit of residence (eg. one house, one unit in a block), owner occupied or tenanted. . Capital requirement may be increased if a society or subsidiary has undertaken abnormal risks or a society has failed to develop and apply adequate systems to monitor or manage risks. . Provision for doubtful debts for both secured and unsecured loans in accordance with a formula determined by AFIC. . Adoption of a minimum prime liquid assets requirement to be met at all times. The ratio to be 10 per cent of all liabilities (other than the amount of defined capital held). . The numerator of the ratio to comprise prime liquefiable assets similar to the prime assets in the RBA PAR ratio broadened to include bank deposits and bills and State or Territory Government issued or guaranteed securities. Forward loan commitments are to be deducted from the numerator unless the State Supervisory Authority is satisfied that appropriate cash flow management systems are in place. . Comprehensive liquidity management systems (to the State Supervisory Authority's satisfaction) to monitor and manage operational liquidity and liquidity risk to prudent levels based on the RBA approach. While the State Supervisory Authority

127 Australian Financial Institutions Commission Code SCHEDULE (continued) 5. Risk Management 6. Large Exposures will review building societies on a case-by-case basis, it is generally recommended that operational liquidity to be 10 per cent of liabilities (other than the amount of defined capital held) and would normally include: — prime liquid assets in excess of set minimum; — undrawn standby and overdraft facilities; — funds securing settlement accounts; and — funds available through securitization of mortgages. . Management systems to control exposures and limit risks associated with financial activities based on the RBA approach and in particular: — credit risk; — liquidity risk; — interest rate risk; and — foreign currency risk. . Written descriptions of the systems to be supplied to the State Supervisory Authority. . A similar approach to that adopted by the RBA including prior notification and subsequent reporting of large exposures to individuals or associated persons above 10 per cent of defined capital held. . Building Societies may be prohibited from entering into a large exposure if the State Supervisory Authority considers it would constitute an excessive risk. . State Supervisory Authority may require a society to maintain a higher capital ratio to support the

128 Australian Financial Institutions Commission Code 7. Subsidiaries 8. Guarantees SCHEDULE (continued) exposure. A society wishing to maintain a high volume of large exposures may be required to maintain a higher capital ratio. . Financial intermediation to be conducted through the holding entity unless there is a sustainable argument to the State Supervisory Authority’s satisfaction. In any event the size of subsidiaries should not become unduly large relative to the holding entity and there should not be a proliferation of subsidiaries. . In relation to any activity of a subsidiary, the State Supervisory Authority may direct a holding society to comply with any guidelines in the same manner as if that activity was being carried out by the society. State Supervisory Authority may direct a merger of a holding building society. . State Supervisory Authority may inspect a subsidiary with which a society has invested funds and may require a society to furnish information relating to the subsidiary. . Subsidiaries’ activities should generally not be guaranteed and then only subject to full consolidation for prudential purposes. The State Supervisory Authority may restrict or prohibit guarantees. . Consolidated capital adequacy and primary objects tests apply. State Supervisory Authority may require a society to maintain a higher capital ratio if a subsidiary has undertaken abnormal risks. . Guarantees of managed funds permitted subject to off-balance sheet weighting but restricted to those where the trust investments are limited to those placed with the society.

129 Australian Financial Institutions Commission Code 9. Ownership 10. Directors SCHEDULE (continued) . Limit of 10 per cent on holding of permanent or withdrawable shares (or other securities as determined) in a society by a person or their associates and this includes directors. Ongoing exemptions renewable on a periodic basis to be considered by the SSA on a case-by-case basis in accordance with standards. . Obligations imposed upon directors and other officers responsible for management, to follow CorporationsLaw provisions and to include restrictions on loans to directors. . Where persons and/or corporations are associated with one another, AFIC will develop guidelines to ensure that independence of the Board of directors is maintained. Compliance 11. Reporting NOTE: . By the external auditor to the Board of directors and in turn to the State Supervisory Authority to follow the RBA style, reporting on the adequacy of the management systems adopted to control exposures and limit risks and compliance with prudential standards. . By the society to the State Supervisory Authority on a comprehensive range of financial information. . By the society to members and other investors (in addition to and more frequent than annual audited accounts) to include risk ratios, capital to support transactions and details of management contracts. All reporting on a group basis as applicable.

130 Australian Financial Institutions Commission Code 12. Inspection 13. Formal Discussions Other Issues 14. Interstate Trading SCHEDULE (continued) . Verification of compliance by regular on-site inspection by the State Supervisory Authority. . Formal discussions between the State Supervisory Authority and directors and senior management to review overall performance. . Foreign registration by host State/Territory subject to society gaining compliance certificate from supervising SSA. Compliance certificate to be issued on the basis of society meeting applicable standards. . Subject to the society not continuing to meet the standards the host State/Territory may withdraw registration. . Home State/Territory supervises with supervision powers available to host State/Territory. . Interstate and cross industry mergers provided for. 15. Management Contracts . To be considered on a case-by-case basis to ensure arm’s length dealings with management and directors and their associations. 16. Liquidity . Mandatory participation in an AFIC approved Support Schemes liquidity support scheme. 17. Additional Standards . AFIC may change, increase or issue new prudential and other standards from time to time, in accordance with legislative provisions.

131 Australian Financial Institutions Commission Code SCHEDULE (continued) CREDIT UNIONS Prudential Standards and Practices Recommendation Entry Requirements 1. Character . National uniformity of objects in rules being: - to operate as a financial co-operative; - to raise funds by deposit, or otherwise from members, as authorised by the legislation; - to apply those funds, subject to the legislation and the rules of the credit union, in giving financial accommodation to members of the credit union; - to provide such other services to its members as the credit union believes would be of benefit to the members. . 60 per cent of group assets held in loans advanced to members. . Commercial lending restricted to a maximum of 10 per cent of group assets where commercial loans are advanced in accordance with prudential standards and the rules of the credit union.

132 Australian Financial Institutions Commission Code SCHEDULE (continued) . Mutual control: One member, one vote; Members being those persons who are admitted to membership in accordance with the rules. Prudential Standards & Practices 2. Capital Adequacy . Adoption of the Reserve Bank’s (RBA) Group risk-assessed approach to capital adequacy. . Minimum 8 per cent risk-assessed capital with a minimum 6 per cent core capital. . Capital definition per RBA with appropriate modifications to suit. . Risk weightings per RBA with appropriate modifications including 50 per cent for residential housing loans secured by registered mortgage over one unit of residence (eg. one house, one unit in a block), owner occupied or tenanted. . Capital requirements may be increased if a credit union or subsidiary has undertaken abnormal risks or a credit union has failed to develop and apply adequate systems to monitor or manage risks. 3. Provision for Doubtful Debts . Provision for doubtful debts for both secured and unsecured loans in accordance with a formula determined by AFIC. 4. Liquidity . Adoption of a minimum prime liquid assets requirement to be met at all times. The ratio to be 7 per cent of all liabilities (other than the amount of defined capital held). . The numerator of the ratio to comprise prime liquefiable assets similar to the prime assets in the

133 Australian Financial Institutions Commission Code SCHEDULE (continued) 5. Risk Management RBA PAR ratio broadened to include bank deposits and bills, State or Territory Government issued or guaranteed securities and deposits held by approved special service providers. Forward loan commitments are to be deducted from the numerator unless the State Supervisory Authority considers appropriate cash flow management systems are in place. . Comprehensive liquidity management systems (to the State Supervisory Authority’s satisfaction) to monitor and manage operational liquidity and liquidity risk to prudent levels based on the RBA approach. While the State Supervisory Authority will review credit unions on a case-by-case basis, it is generally recommended that operational liquidity be maintained at 8 per cent of liabilities (other than the amount of defined capital required) to include: — prime liquid assets in excess of set minimum; — funds securing settlement accounts — operational funds held by approved special service providers; — undrawn standby and overdraft facilities; and — funds available through the securitization of loans. . Management systems to control and limit risks associated with financial activities based on the RBA approach and in particular: — credit risk; — liquidity risk; and — interest rate risk. . Written descriptions of the systems to be supplied to the State Supervisory Authority.

134 Australian Financial Institutions Commission Code 6. Large Exposures 7. Subsidiaries SCHEDULE (continued) . A similar approach to that adopted by the RBA including prior notification and subsequent reporting of large exposures to individuals or associated persons above 10 per cent of defined capital held. . Credit unions may be prohibited from entering into a large exposure if State Supervisory Authority considers it would constitute an excessive risk. . State Supervisory Authority may require a credit union to maintain a higher capital ratio to support the exposure. A credit union wishing to maintain a high volume of large exposures may be required to maintain a higher capital ratio. . A sectional limit of 10 per cent of assets to apply to commercial lending. Also commercial loans to a member or group of associated members are not to exceed in aggregate 1 per cent of all loans outstanding. . Financial intermediation to be conducted through the holding entity unless there is a sustainable argument to the State Supervisory Authority's satisfaction. In any event the size of subsidiaries should not become unduly large relative to the holding entity and there should not be a proliferation of subsidiaries. . In relation to any activity of a subsidiary, State Supervisory Authority may direct a holding credit union to comply with any guidelines in the same manner as if that activity was being carried out by the credit union. State Supervisory Authority may direct a merger of a holding credit union.

135 Australian Financial Institutions Commission Code 8. Guarantees 9. Ownership 10. Directors 11. Managed Funds SCHEDULE (continued) . State Supervisory Authority may inspect a subsidiary with which a credit union has invested funds and may require a credit union to furnish information relating to the subsidiary. . Subsidiaries’ activities should generally not be guaranteed and then only subject to full consolidation for prudential purposes. The State Supervisory Authority may restrict or prohibit guarantees. . Consolidated capital adequacy applies. State Supervisory Authority may require a credit union to maintain a higher capital ratio if a subsidiary has undertaken abnormal risks. . General prohibition of guarantees to third parties. . Limit of 10 per cent on holding of withdrawable shares in a credit union by a person or their associates and this includes directors. . One member, one vote. . Obligations imposed upon directors and other officers responsible for management, to follow CorporationsLaw provisions and include restrictions on loans to directors. . Where persons and/or corporations are associated with one another, AFIC will develop guidelines to ensure the independence of the Board of directors is maintained. . Credit unions should generally not be involved with managed funds (ADF’s, superannuation). State Supervisory Authority may permit where risk is minimal and maybe appropriately undertaken at national industry level.

136 Australian Financial Institutions Commission Code Compliance 12. Reporting NOTE: 13. Inspection 14. Formal Discussions Other Issues 15. Interstate Trading SCHEDULE (continued) . By the external auditor to the Board of Directors and in turn to the State Supervisory Authority to follow the RBA style, reporting on the adequacy of the management systems adopted to control exposures and limit risks and compliance with prudential standards. . By the credit union to the State Supervisory Authority on a comprehensive range of financial information. . By the credit union to members (in addition to and more frequent than annual audited accounts) to include risk ratios and capital to support transactions. All reporting on a group basis as applicable. . Verification of compliance by regular on site inspection by the State Supervisory Authority. . Formal discussions between the State Supervisory Authority and directors and senior management to review overall performance. . Foreign registration by host State/Territory subject to society gaining compliance certificate from supervising SSA. Compliance certificate to be issued on the basis of society meeting applicable standards. . Subject to the credit union not continuing to meet the standards the host State/Territory may withdraw registration.

137 Australian Financial Institutions Commission Code SCHEDULE (continued) . Home State/Territory supervises with supervision powers available to host State/Territory. . Interstate and cross industry mergers provided for. 16. Management Contracts . To be reviewed on a case-by-case basis to ensure arm’s length dealings with management and directors and their associates. 17. Liquidity . Mandatory participation in an AFIC approved Support Schemes liquidity support scheme. 18. Additional Standards . AFIC may change, increase or issue new prudential and other standards from time to time, in accordance with legislative provisions.

138 Australian Financial Institutions Commission Code SCHEDULE (continued) SCHEDULE 2 Transitional Legislation Transitional Legislation shall include provisions in respect of associations of credit unions formed or incorporated prior to the commencement of the Financial Institutions Legislation— (a) to permit them to transfer their engagements and membership to a special services provider incorporated under the Financial Institutions Legislation; (b) where any member of any such association elects not to transfer its membership to a special services provider to require that special services provider to pay to that credit union (by such instalments and at such time as AFIC may approve) the share of surplus to which it would otherwise be entitled had the association been wound up; (c) to permit such associations to transfer to a special services provider of treasury services to credit unions such equitable mortgages or charges as they hold over the assets of credit unions.

139 Australian Financial Institutions Commission Code ENDNOTES ´ 1 Index to endnotes Page 2 Date to which amendments incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 3 Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 4 Table of reprints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 5 Tables in earlier reprints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 6 List of legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 7 List of annotations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 ´ 2 Date to which amendments incorporated This is the reprint date mentioned in the ReprintsAct1992, section 5(c). Accordingly, this reprint includes all amendments that commenced operation on or before 20 November 1997. Future amendments of the Australian Financial Institutions Commission Code may be made in accordance with this reprint under the Reprints Act 1992, section 49.

140 Australian Financial Institutions Commission Code 3 ´ AIA amd ch def div exp gaz hdg ins lap notfd om o in c p para prec pres prev = = = = = = = = = = = = = = = = = = Key Key to abbreviations in list of legislation and annotations Acts Interpretation Act 1954 amended chapter definition division expires/expired gazette heading inserted lapsed notified omitted order in council page paragraph preceding present previous (prev) proc prov pt pubd R[X] RA reloc renum rep s sch sdiv SIA SL sub unnum = = = = = = = = = = = = = = = = = previously proclamation provision part published Reprint No.[X] Reprints Act 1992 relocated renumbered repealed section schedule subdivision Statutory Instruments Act 1992 subordinate legislation substituted unnumbered ´ 4 Table of earlier reprints TABLE OF EARLIER REPRINTS [If a reprint number includes a roman letter, the reprint was released in unauthorised, electronic form only.] Reprint No. Amendments included Reprint date 1 none 1 July 1992 2 to Act No. 25 of 1993 27 July 1993 3 to Act No. 27 of 1994 28 July 1994 ´ 5 Tables in earlier reprints Name of table TABLES IN EARLIER REPRINTS Table of corrected minor errors Reprint No. 2

141 Australian Financial Institutions Commission Code ´ 6 List of legislation Australian Financial Institutions Commission Code date of assent 27 March 1992 pts 1–4 (other than s 2), pts 11–13 commenced 10 April 1992 (1992 SL No. 73) remaining provisions commenced 1 July 1992 (1992 SL No. 168) [This is the Code set out in section 21 of the AustralianFinancialInstitutions Commission Act 1992 of Queensland]. as amended by— Financial Institutions Legislation Amendment Act 1993 No. 25 pts 1, 3 date of assent 2 June 1993 ss 1–2 commenced on date of assent remaining provisions commenced 1 July 1993 (see s 2) Financial Institutions Legislation Amendment Act 1994 No. 27 pts 1, 5 date of assent 28 June 1994 ss 1–2 commenced on date of assent remaining provisions commenced 1 July 1994 (1994 SL No. 222) Public Service Act 1996 No. 37 ss 1–2, 147 sch 2 date of assent 22 October 1996 ss 1–2 commenced on date of assent remaining provisions never proclaimed into force and om 1997 No. 33 s 128 FinancialInstitutionsLegislationAmendmentAct1997 No. 33 ss 1–2(1) pt 2, s 34 sch date of assent 18 July 1997 ss 1–2 commenced on date of assent remaining provisions commenced 1 October 1997 (1997 SL No. 318) ´ 7 List of annotations Definitions s 3 def “ASC” ins 1997 No. 33 s 4(2) def “association” amd 1997 No. 33 s 4(3) def “COFS” ins 1997 No. 33 s 4(2) def “fiscal bodies legislation” ins 1997 No. 33 s 4(2) def “fiscal body” ins 1997 No. 33 s 4(2) def “friendly association” ins 1997 No. 33 s 4(2) def “friendly institution” ins 1997 No. 33 s 4(2) def “friendly societies legislation” ins 1997 No. 33 s 4(2) def “friendly society” ins 1997 No. 33 s 4(2) def “group” amd 1997 No. 33 s 34(1) sch def “ISC” ins 1997 No. 33 s 4(2) def “PHIAC” ins 1997 No. 33 s 4(2)

142 Australian Financial Institutions Commission Code def “prudential standard” amd 1997 No. 33 ss 4(4), 34(2) sch def “RBA” ins 1997 No. 33 s 4(2) def “society” amd 1997 No. 33 s 4(5) def “State supervisory authority” sub 1997 No. 33 s 4(1)–(2) Interpretation—words etc. used in Financial Institutions Code or Friendly Societies Code prov hdg amd 1997 No. 33 s 5 s 4 amd 1997 No. 33 s 5 The financial institutions scheme s 6 amd 1997 No. 33 s 34(2) sch Friendly societies legislation s 8A ins 1997 No. 33 s 6 Principal object of financial institutions scheme and its achievement s 9 amd 1997 No. 33 ss 7, 34(2) sch Principles of supervision s 10 amd 1997 No. 33 ss 8, 34(2) sch Role of State supervisory authorities s 11 amd 1997 No. 33 s 9 PART 2—THE FINANCIAL INSTITUTIONS SCHEME AND ITS MAIN ELEMENTS Division 2—Operation of fiscal bodies legislation div hdg amd 1997 No. 33 s 34(2) sch Extraterritorial operation of legislation s 12 amd 1997 No. 33 s 34(2) sch Fiscal bodies legislation binds the Crown prov hdg amd 1997 No. 33 s 10 s 13 amd 1997 No. 33 s 34(2) sch Functions s 15 amd 1997 No. 33 ss 11, 34(2) sch General powers s 16 amd 1997 No. 33 s 34(2) sch AFIC independent body s 18 amd 1997 No. 33 s 34(2) sch Consultation s 23 amd 1997 No. 33 s 12 Composition of the Board s 25 amd 1997 No. 33 s 13 Making etc. of standards s 28 amd 1997 No. 33 s 34(2) sch

143 Australian Financial Institutions Commission Code Application of changed requirements s 31 amd 1997 No. 33 s 34(1) sch Matters for which standards may make provision s 33 1997 No. 33 s 34(2) sch Publication of standards s 34 amd 1997 No. 33 s 34(1) sch No discrimination on ground of connection with particular States s 35 1997 No. 33 s 34(2) sch Registration of special service providers s 36 amd 1997 No. 33 s 14 Application of Financial Institutions Code s 40 amd 1994 No. 27 s 72 Restrictions on making determination s 45 amd 1997 No. 33 s 15 Provision of liquidity support s 46 amd 1994 No. 27 s 73 Certain applied provisions not effective s 46A ins 1997 No. 33 s 16 Limitation on court’s power to make order s 46B ins 1997 No. 33 s 16 PART 6A—NAMES pt hdg ins 1994 No. 27 s 74 Reference to registration of fiscal body’s name s 47A ins 1994 No. 27 s 74 sub 1997 No. 33 s 17 Fiscal body must have certain words as part of name s 47B ins 1994 No. 27 s 74 sub 1997 No. 33 s 17 Approval of name for use s 47BA ins 1997 No. 33 s 17 Reservation of names s 47C ins 1994 No. 27 s 74 amd 1997 No. 33 ss 18, 34 sch Extension of reservation s 47D ins 1994 No. 27 s 74 End of reservation s 47E ins 1994 No. 27 s 74 sub 1997 No. 33 s 19

144 Australian Financial Institutions Commission Code AFIC may direct change of name or revoke approval of name s 47F ins 1994 No. 27 s 74 sub 1997 No. 33 s 19 Obtaining information from State supervisory authorities s 48 amd 1997 No. 33 s 20 Reports to Ministerial Council etc. concerning State supervisory authorities s 49 amd 1997 No. 33 s 34(2) sch Obtaining evidence s 52 amd 1994 No. 27 s 75; 1997 No. 33 ss 21, 34(2) sch Entry and search—monitoring compliance s 55 amd 1997 No. 33 ss 22, 34(1) sch Offence related warrant may be granted by telephone s 60 amd 1997 No. 33 s 23 Proceedings for offences s 63 amd 1994 No. 27 s 76 Reviewable decisions s 65 amd 1997 No. 33 s 34(2) sch Appointment of members s 69 amd 1996 No. 37 s 147 sch 2 (never proclaimed into force and om 1997 No. 33 s 128); 1997 No. 33 s 24 Procedure of Appeals Tribunal s 85 amd 1997 No. 33 s 34(2) sch Hearings to be in private unless all parties agree etc. s 87 amd 1993 No. 25 s 19 Review by Tribunal s 94 amd 1997 No. 33 s 34(2) sch Appeals from decisions of Appeals Tribunal prov hdg amd 1994 No. 27 s 77(1) s 96 amd 1994 No. 27 s 77(2) Operation and implementation of a decision subject to appeal s 97 amd 1994 No. 27 s 78 Reference of questions of law prov hdg amd 1994 No. 27 s 79(1) s 98 amd 1994 No. 27 s 79(2) Costs s 99 amd 1994 No. 27 s 80 Protection of members s 100 amd 1994 No. 27 s 81

145 Australian Financial Institutions Commission Code Terms and conditions of employment s 111 amd 1996 No. 37 s 147 sch 2 (never proclaimed into force and om 1997 No. 33 s 128); 1997 No. 33 s 25 Delegation of powers by chairperson s 115 amd 1997 No. 33 s 34(2) sch Administration levy s 119 amd 1997 No. 33 s 34(2) sch Collection of administration levy s 120 amd 1997 No. 33 ss 26, 34 sch Interpretation—meaning of “required minimum number of directors” s 121 amd 1997 No. 33 s 27 Restriction on appointments s 132 amd 1997 No. 33 s 34(1) sch Directors appointed under Code s 133 sub 1996 No. 37 s 147 sch 2 (never proclaimed into force and om 1997 No. 33 s 128); 1997 No. 33 s 28 Termination of appointment s 139 amd 1997 No. 33 s 34(1) sch Deputy chairperson s 140 amd 1997 No. 33 s 34(2) sch Restriction on appointment s 143 amd 1997 No. 33 s 34(1) sch Executive director appointed under Code s 144 sub 1996 No. 37 s 147 sch 2 (never proclaimed into force and om 1997 No. 33 s 128); 1997 No. 33 s 29 Terms and conditions of employment s 153 amd 1993 No. 25 s 20; 1996 No. 37 s 147 sch 2 (never proclaimed into force and om 1997 No. 33 s 128); 1997 No. 33 s 30 Secrecy s 155 sub 1997 No. 33 s 31 Register of financial interests of directors and employees s 156 amd 1993 No. 25 s 21; 1997 No. 33 s 34(1) sch Directors and employees to act honestly etc. s 157 amd 1997 No. 33 s 32 Judicial notice of certain signatures s 161 amd 1993 No. 25 s 22 Delegation of Board’s powers s 164 amd 1997 No. 33 ss 33, 34(2) sch

146 Australian Financial Institutions CommissionCode PART 14—TRANSITIONAL pt hdg ins 1997 No. 33 s 33A Transitional provision for commencement of amendments for applying Code to friendly societies s 166 ins 1997 No. 33 s 33A © State of Queensland 1997