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Legislation au F1997B02705 Regulations Not in force Legislative Instrument

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Insurance Acquisitions and Takeovers Regulations 1997 No. 236

EXPLANATORY STATEMENT

STATUTORY RULES 1997 No. 236

Issued by the authority of the Assistant Treasurer

Insurance Acquisitions and Takeovers Act 1991

Insurance Acquisitions and Takeovers Regulations

The Insurance Acquisitions and Takeovers Act 1991 (the Act) provides for the compulsory notification of proposals to acquire interests in, Australian registered insurance and related companies. The objective of the Act is to protect the public interest by: ensuring that the affairs of Australian registered insurance companies are conducted in a prudential manner; preventing unsuitable persons from being in a position of influence over Australian insurance companies; and preventing undue concentration in the insurance industry.

Section 82 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.

Section 75 of the Act provides for secrecy in respect of information acquired for purposes of the Act. The Financial Laws Amendment Act 1997, which commenced on 30 June 1997, amended Section 75 such that information may be disclosed to prescribed financial sector supervisory agencies, law enforcement agencies and overseas financial sector supervisory agencies.

Three regulations have been inserted into what is cited as the Insurance Acquisitions and Takeovers Regulations. These regulations prescribe financial sector supervisory agencies, law enforcement agencies and overseas financial sector supervisory agencies to whom a compliance officer, pursuant to Section 75 of the Act, may disclose protected information or documents acquired in, the course of performing his or her duties.

Section 75 and the regulations are aimed at facilitating the ability of the Insurance and Superannuation Commission to act quickly to exchange information to prevent and/or manage a crisis situation within financial conglomerates.

The regulations are described in detail in the attachment.

ATTACHMENT

Regulation 1 - Citation

Regulation 1 states that these regulations may be cited as the Insurance Acquisitions and Takeovers Regulations, and includes a note that these regulations commence on gazettal.

Regulation 2 - Financial sector supervisory agency

Section 75 of the Act generally prohibits a compliance officer from disclosing protected information or producing protected documents, other than for the purposes of the Act or any other Act administered by the Insurance and Superannuation Commissioner, that have been acquired by the compliance officer in the course of performing his or her duties as a compliance officer.

Certain exceptions to this general rule are provided for in section 75. Paragraph 75(4)(c) provides that protected information may be disclosed, or protected documents produced, to a financial sector supervisory agency for the purposes of the performance of any of the agency's functions or the exercise of any of its powers.

'Financial sector supervisory agency' is defined in subsection 75(1) of the Act as meaning 'a person or body declared by the regulations to be a financial sector supervisory agency for the purposes of this section'.

This regulation prescribes the financial sector supervisory agencies for the purposes of subsection 75(1) of the Act.

Regulation 3 - Law enforcement agency

Section 75 of the Act generally prohibits a compliance officer from disclosing protected information or producing protected documents, other than for the purposes of the Act or any other Act administered by the Insurance and Superannuation Commissioner, that have been acquired by the compliance officer. in, the course of performing his or her duties as a compliance officer.

Certain exceptions to this general rule are provided for in section 75. Paragraph 75(5)(a) and subsection 75(6) provide that protected information may be disclosed, or protected documents produced, to a law enforcement agency for the purposes of the performance by the agency of its functions in relation to an offence or alleged offence against a law of the Commonwealth, of a State or of a Territory.

'Law enforcement agency' is defined in subsection 75(1) of the Act as meaning 'a person or body declared by the regulations to be a law enforcement agency for the purposes of this section'.

This regulation prescribes the law enforcement agencies for the purposes of subsection 75(1) of the Act.

Regulation 4 - Overseas financial sector supervisory agency

Section 75 of the Act generally prohibits a compliance officer from disclosing protected information or producing protected documents, other than for the purposes of the Act or any other Act administered by the Insurance and Superannuation Commissioner, that have been acquired by the compliance officer in the course of performing his or her duties as a compliance officer.

Certain exceptions to this general rule are provided for in section 75. Paragraph 75(4)(d) provides that protected information may be disclosed, or protected documents produced, to an overseas financial sector supervisory agency for the purposes of the performance of any of the agency's functions or the exercise of any of its powers.

'Overseas financial sector supervisory agency' is defined in subsection 75(1) of the Act as meaning 'a person or body declared by the regulations to be an overseas financial sector supervisory agency for the purposes of this section'.

This regulation prescribes the overseas financial sector supervisory agencies for the purposes of subsection 75(1) of the Act.

 

Overview

The Insurance Acquisitions and Takeovers Act 1991, enacted by the Australian Parliament, was introduced to address the need for safeguarding the public interest in the insurance industry. The primary objectives of the Act are to ensure that Australian registered insurance companies are managed prudently, to prevent unsuitable individuals from exerting undue influence over these companies, and to avoid undue concentration within the insurance sector. To facilitate these objectives, the Act includes provisions that allow the Governor-General to establish regulations, as stipulated in Section 82, to support the Act's purposes. The Act's secrecy provision, outlined in Section 75, was subsequently amended by the Financial Laws Amendment Act 1997 to permit the disclosure of protected information to prescribed financial sector supervisory agencies, law enforcement agencies, and overseas financial sector supervisory agencies. This amendment aims to enable the Insurance and Superannuation Commission to swiftly exchange information and effectively manage any crisis situations within financial conglomerates.

Scope and Application

The Insurance Acquisitions and Takeovers Regulations 1997 are subsidiary legislation made under the Insurance Acquisitions and Takeovers Act 1991. The Act mandates compulsory notification of proposals to acquire interests in Australian registered insurance and related companies, with the overarching aim of protecting the public interest by ensuring the prudential conduct of Australian insurance companies, preventing unsuitable individuals from gaining undue influence, and avoiding undue industry concentration. The Act applies to any person or entity proposing to acquire an interest in an Australian registered insurance company. These regulations extend the application of the Act by detailing which specific financial sector supervisory agencies, law enforcement agencies, and overseas financial sector supervisory agencies can receive protected information under certain conditions. The regulations specify the agencies that can receive such information, facilitating the swift exchange of information necessary to prevent or manage crises within financial conglomerates, as amended by the Financial Laws Amendment Act 1997. The scope of these regulations is national, applying across all states and territories within Australia.

Key Provisions

The Insurance Acquisitions and Takeovers Regulations 1997 establish the framework for the disclosure of protected information by compliance officers as required by Section 75 of the Insurance Acquisitions and Takeovers Act 1991 (the Act). Section 75 generally prohibits a compliance officer from disclosing or producing protected information or documents, except for specific purposes. Regulation 2 defines the financial sector supervisory agencies to whom protected information can be disclosed for the purposes of performing the agency's functions or exercising its powers, as outlined in paragraph 75(4)(c) of the Act. Regulation 3 similarly defines law enforcement agencies, allowing the disclosure of protected information for the performance of their functions in relation to offences under Commonwealth, State, or Territory laws, as stated in paragraphs 75(5)(a) and 75(6) of the Act. Regulation 4 specifies overseas financial sector supervisory agencies, enabling the disclosure of protected information for the performance of their functions, as detailed in paragraph 75(4)(d) of the Act. The Insurance Acquisitions and Takeovers Regulations impose specific obligations on compliance officers to ensure that they do not disclose protected information outside the defined parameters. Compliance officers are required to maintain the confidentiality of protected information unless it is disclosed to one of the prescribed agencies as outlined in Regulations 2, 3, or 4. The Act and the regulations mandate that any disclosure to these agencies must be strictly for the purposes specified, ensuring that sensitive information is used appropriately and only where necessary to protect the public interest and the integrity of the financial sector. Breaches of the provisions outlined in the Act and the regulations may result in significant legal consequences. While the Act and regulations do not explicitly outline specific penalties for non-compliance, breaches of the Act's confidentiality provisions could potentially lead to civil or criminal penalties under other relevant Australian legislation, such as the Privacy Act 1988 or common law principles concerning breaches of confidence. Additionally, unauthorised disclosure of protected information could result in actions for damages by affected parties, further highlighting the importance of adhering to the stipulated requirements.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.