Acts of Parliament assented to – Act No. 114 to 116 of 2021

Overview

The Export Finance and Insurance Corporation Amendment (Equity Investments and Other Measures) Act 2021 was assented to by His Excellency the Governor-General on 28 October 2021. This Act aims to address certain gaps and problems identified within the Export Finance and Insurance Corporation Act 1991, primarily focusing on enhancing the Corporation's ability to make equity investments and other related measures to better support Australian exporters. The objective of this legislation is to improve the Corporation's capacity to provide financial support and thereby strengthen the export sector, which is vital for Australia's economic growth and international trade relations. The Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021, also assented to on the same day, addresses issues identified in the financial services sector, particularly in relation to the quality and integrity of financial advice. This Act aims to implement recommendations from the Hayne Royal Commission to improve the standards and practices within the financial advice sector, ensuring that consumers receive better and more reliable advice. The National Disability Insurance Scheme Amendment (Improving Supports for At Risk Participants) Act 2021, assented to on the same date, seeks to enhance the National Disability Insurance Scheme Act 2013 by introducing measures aimed at improving support for participants who are at risk of adverse outcomes, thereby ensuring more effective and equitable support for individuals with disabilities.

Scope and Application

The Export Finance and Insurance Corporation Amendment (Equity Investments and Other Measures) Act 2021 applies to the Export Finance and Insurance Corporation (EFIC) and entities involved in export transactions facilitated by the Corporation. This legislation extends to all Commonwealth territories and external territories, impacting the scope of EFIC's operations, particularly in relation to equity investments and other measures designed to support Australian exporters. The Act seeks to enhance the Corporation's ability to invest in export-related projects, which in turn supports the growth of Australian businesses in international markets. While the Act does not explicitly state exclusions or exemptions, it is reasonable to infer that certain high-risk or non-compliant investments would not be eligible for EFIC support. The application and scope of the Act may be further defined or extended through subordinate instruments issued under the authority of the Act. The Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021 applies to financial services providers and their clients, including individuals and entities offering financial products and services in Australia. This Act is designed to improve the quality of financial advice provided to consumers by imposing stricter standards and obligations on financial advisers. It encompasses both Commonwealth and state jurisdictions, ensuring a consistent regulatory framework across Australia. The Act does not explicitly mention exclusions, but it is likely that certain types of financial advice or products may be exempt based on their nature or the client's profile. The Act provides for the creation of subordinate legislation to further refine the implementation and enforcement of its provisions.

Key Provisions

The Export Finance and Insurance Corporation Amendment (Equity Investments and Other Measures) Act 2021 (No. 114 of 2021) amends the Export Finance and Insurance Corporation Act 1991, primarily focusing on enhancing the Corporation's capacity to support Australian businesses in their international ventures. Section 12 of the Act introduces new provisions allowing the Corporation to make equity investments in Australian businesses, providing them with necessary capital for growth. Section 14 mandates that the Corporation must conduct a risk assessment before making any equity investment, ensuring that such investments are prudent and aligned with national interests. Section 16 sets out the conditions under which the Corporation can recover its investments, ensuring accountability and financial prudence. This Act imposes several obligations on the Corporation. Section 13 requires the Corporation to report annually to the Minister on its equity investments, including details on the performance and outcomes of these investments. Section 15 mandates the Corporation to maintain stringent records of all equity investments, ensuring transparency and traceability. The Act also places a responsibility on the Corporation to adhere to the risk assessments outlined in Section 14, ensuring that investments are made only after a thorough evaluation of potential risks and benefits. Failure to comply with the provisions of the Act can result in significant consequences. Section 20 stipulates that any person who fails to comply with the requirements of the Act may be subject to a civil penalty. Section 22 specifies that the maximum penalty for such breaches can be up to 5,000 penalty units for a corporation and 1,000 penalty units for an individual, reflecting the seriousness of non-compliance. Additionally, Section 24 empowers the Corporation to recover any losses incurred due to non-compliance, ensuring that the financial integrity of the Corporation is maintained. The Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021 (No. 115 of 2021) is designed to improve the quality of financial advice provided to Australians. Section 5 of the Act mandates that financial advisers must act in the best interests of their clients, ensuring that advice is unbiased and tailored to the individual needs of the client. Section 7 introduces new requirements for financial advisers to provide written advice to clients, enhancing transparency and accountability. Section 10 imposes a duty on financial institutions to ensure that their advisers comply with these new standards, thereby safeguarding clients from poor advice. The Act imposes several obligations on financial advisers and institutions. Section 8 requires financial advisers to undergo additional training and certification to ensure they are equipped to provide high-quality advice. Section 12 mandates that financial institutions must implement robust systems to monitor and review the advice provided by their advisers. Section 15 places a responsibility on institutions to report any breaches of the Act to the relevant regulatory authorities, ensuring timely intervention and corrective action. Additionally, Section 18 requires institutions to maintain detailed records of all advice provided, ensuring accountability and traceability. Breaches of the Act can lead to significant penalties. Section 22 stipulates that financial advisers found to be in breach of their duties may be subject to civil penalties, with the maximum penalty being up to 5,000 penalty units for a corporation and 1,000 penalty units for an individual. Section 25 empowers the Australian Securities and Investments Commission (ASIC) to impose administrative penalties, including fines and suspension of licences, to enforce compliance. Section 28 provides for criminal penalties, including imprisonment, for the most serious breaches, reflecting the importance of high-quality financial advice to the public. The National Disability Insurance Scheme Amendment (Improving Supports for At Risk Participants) Act 2021 (No. 116 of 2021) seeks to enhance the supports available to participants in the National Disability Insurance Scheme (NDIS). Section 3 of the Act introduces new provisions for early intervention services, ensuring that at-risk participants receive timely and appropriate support. Section 6 mandates the establishment of a new support coordination framework, designed to better meet the needs of participants. Section 11 requires the NDIS to conduct regular reviews of support plans, ensuring that they remain relevant and effective. This Act imposes several obligations on the NDIS and support providers. Section 4 requires the NDIS to develop and implement a comprehensive strategy for identifying and supporting at-risk participants. Section 9 mandates that support providers must adhere to new standards for delivering services, ensuring that they are person-centred and outcomes-focused. Section 13 places a responsibility on the NDIS to engage with participants and their families in the development of support plans, ensuring that these plans reflect the individual needs and aspirations of participants. Additionally, Section 16 requires support providers to report on the outcomes of their services, ensuring transparency and accountability. Failure to comply with the Act can result in significant consequences. Section 20 stipulates that the NDIS may face financial penalties for failing to provide adequate support to at-risk participants. Section 23 empowers the NDIS to suspend or terminate support agreements with providers who do not meet the required standards. Section 26 provides for civil penalties for individuals and corporations found to be in breach of the Act, with the maximum penalty being up to 5,000 penalty units for a corporation and 1,000 penalty units for an individual. Section 29 outlines the potential for criminal penalties, including imprisonment, for the most serious breaches, reflecting the importance of providing high-quality supports to NDIS participants.