Australian Prudential Regulation Authority (Standing Acting Arrangements) Amendment (Measures No. 1) Appointment 2024
I, Jim Chalmers, Treasurer, make the following appointments.
Dated 26 November 2024
Dr Jim Chalmers
Treasurer
Contents
1 Name
2 Commencement
3 Authority
4 Schedules
Schedule 1—Amendments
Australian Prudential Regulation Authority (Standing Acting Arrangements) Appointment 2021
1 Name
This instrument is the Australian Prudential Regulation Authority (Standing Acting Arrangements) Amendment (Measures No. 1) Appointment 2024.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this instrument | The day after this instrument is registered. | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under the Australian Prudential Regulation Authority Act 1998.
4 Schedules
Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1—Amendments
Australian Prudential Regulation Authority (Standing Acting Arrangements) Appointment 2021
1 Subsection 6(2)
Repeal the subsection, substitute:
(2) For the purposes of this instrument, the senior available appointee at a particular time is a person who, at that time, satisfies all of the following:
(a) is an APRA member;
(b) is not absent from duty or from Australia;
(c) has not, during a vacancy in the office of Chair or absence of the Chair, continued to act as Chair for a period of more than 12 months;
(c) has advised that they are available to act as Chair;
(d) is highest in the following list:
(i) Margaret Cole;
(ii) Therese McCarthy Hockey;
(iii) Suzanne Smith.
2 Section 7
Repeal the section.
Overview
The Australian Prudential Regulation Authority (Standing Acting Arrangements) Amendment (Measures No. 1) Appointment 2024, made by Jim Chalmers, Treasurer, amends the existing standing acting arrangements for the Australian Prudential Regulation Authority (APRA). Enacted by the Parliament of Australia, this instrument seeks to address the need for updated procedures in the appointment of acting chairs during vacancies or absences. The policy objective is to ensure that APRA can maintain effective oversight and regulation of the financial sector by providing clear guidelines for the appointment of acting chairs, thereby enhancing the authority's stability and efficiency. The amendments, effective from the day after the instrument's registration, specifically alter the criteria for determining the senior available appointee and streamline the process to avoid prolonged acting appointments.
Scope and Application
The Australian Prudential Regulation Authority (Standing Acting Arrangements) Amendment (Measures No. 1) Appointment 2024, made under the Australian Prudential Regulation Authority Act 1998, amends the existing standing acting arrangements for the Australian Prudential Regulation Authority (APRA). This instrument specifies that the standing acting arrangements now apply to the APRA members listed, namely Margaret Cole, Therese McCarthy Hockey, and Suzanne Smith, in the order of their seniority, with certain conditions such as being an APRA member, not being absent from duty or from Australia, and not having acted as Chair for more than 12 months during a vacancy. The instrument also repeals specific subsections and sections of the original appointment instrument, effective from the day after registration. The changes are designed to refine the eligibility and procedural requirements for acting as Chair of APRA during vacancies or absences, ensuring a smooth transition and continuity in the regulation and supervision of Australia's financial institutions.
Key Provisions
The Australian Prudential Regulation Authority (Standing Acting Arrangements) Amendment (Measures No. 1) Appointment 2024I, made by Jim Chalmers, the Treasurer, introduces several significant amendments to the existing Standing Acting Arrangements for the Australian Prudential Regulation Authority (APRA). Section 1 of the instrument provides the name of the instrument as the Australian Prudential Regulation Authority (Standing Acting Arrangements) Amendment (Measures No. 1) Appointment 2024. Section 2 outlines the commencement of the instrument, stating that each provision specified in the table will commence on the day after the instrument is registered. Any other statements in the table will have effect according to their terms.
The operative sections of the instrument primarily concern the amendments to the Australian Prudential Regulation Authority (Standing Acting Arrangements) Appointment 2021. Section 6(2) of the existing arrangement is repealed and substituted to redefine who qualifies as the senior available appointee. The new criteria include being an APRA member, not being absent from duty or from Australia, not having acted as Chair for over 12 months during a vacancy, advising availability to act as Chair, and being highest on the specified list of Margaret Cole, Therese McCarthy Hockey, and Suzanne Smith. Section 7 of the existing arrangement is repealed.
The instrument imposes specific obligations on the APRA regarding the appointment of a senior available appointee. According to the new criteria in section 6(2), the appointee must satisfy the conditions of being an APRA member, being present and available, not having acted as Chair for more than 12 months during a vacancy, and being willing to take on the role. The appointee must also be the highest on the specified list of Margaret Cole, Therese McCarthy Hockey, and Suzanne Smith.
In terms of consequences for non-compliance, the instrument does not explicitly state any offences, penalties, or consequences. However, the legislative framework under which this instrument is made, the Australian Prudential Regulation Authority Act 1998, may provide for civil or criminal penalties for non-compliance with APRA’s regulatory requirements. The specific penalties would depend on the nature and severity of the breach, as outlined in the Act.