Australian Prudential Regulation Authority (Standing Acting Arrangements for Chair) Appointment 2018

Overview

The Australian Prudential Regulation Authority (Standing Acting Arrangements for Chair) Appointment 2018 was enacted by the Treasurer, Josh Frydenberg, under subsection 19(2) of the Australian Prudential Regulation Authority Act 1998. This legislative instrument was introduced to address the need for continuity and stability in the leadership of the Australian Prudential Regulation Authority (APRA) in the absence of the Chair. It ensures that APRA's critical regulatory functions continue smoothly, without interruption, when the Chair is either absent or incapacitated. The policy objective is to maintain the effective oversight and regulation of financial institutions in Australia by providing a clear and structured process for the appointment of an acting Chair. The instrument revokes all previous appointments made under the same subsection and establishes a hierarchy for the selection of a senior available appointee to act as Chair. The list of potential acting Chairs, in order of seniority, is Helen Rowell, John Lonsdale, and Geoff Summerhayes. The senior available appointee at the time of the Chair's absence or incapacity will act as Chair, with the proviso that if the acting Chair ceases to be the most senior available appointee during their tenure, the new most senior available appointee will take over. This appointment mechanism is designed to ensure that APRA's regulatory functions are always overseen by a qualified individual, thereby preserving the integrity and stability of Australia's financial system.

Scope and Application

The Australian Prudential Regulation Authority (Standing Acting Arrangements for Chair) Appointment 2018 applies to the appointment of an acting Chair for the Australian Prudential Regulation Authority (APRA) in specific circumstances where the substantive Chair is unable to perform their functions. This notifiable instrument is made under subsection 19(2) of the Australian Prudential Regulation Authority Act 1998 and revokes all previous appointments of this nature. The instrument stipulates that in the absence or incapacitation of the APRA Chair, the acting Chair will be one of the three individuals listed in order of seniority: Helen Rowell, John Lonsdale, and Geoff Summerhayes. This appointment arrangement applies during periods when the Chair is absent from duty, absent from Australia, or otherwise unable to perform their duties, with provisions for transitioning between acting Chairs if the seniority list changes during such periods. The instrument operates within the Commonwealth jurisdiction and takes effect from the date of signature, which is 18 September 2018. There are no exclusions, exemptions, or thresholds specified within the text of this instrument, although the application and interpretation may be subject to any relevant subordinate instruments or regulations.

Key Provisions

The main sections of the Australian Prudential Regulation Authority (Standing Acting Arrangements for Chair) Appointment 2018 (F2018N00150) establish temporary arrangements for the role of the Chair of the Australian Prudential Regulation Authority (APRA) when the Chair is either absent from duty, away from Australia, or unable to perform their duties for any reason. Under section (1), the instrument revokes all previous appointments made under subsection 19(2) of the Australian Prudential Regulation Authority Act 1998. Section (2) appoints a person to act as Chair during the periods specified in the instrument, contingent on the criteria outlined in sections (3) through (5). The identity of the acting Chair is determined by the seniority of the available appointees as listed in section (3), which prioritises Helen Rowell, John Lonsdale, and Geoff Summerhayes in that order. Section (4) specifies that the most senior available appointee at the start of the period when the Chair is absent will act as Chair during that period, while section (5) outlines the procedure for changing the acting Chair if the initially appointed person ceases to be the most senior available appointee during the period. The Act imposes specific obligations on the parties it governs. It mandates the revocation of all previous appointments, ensuring that the new arrangements take precedence. The Act also requires that the acting Chair be the most senior available appointee at the beginning of the period of the Chair's absence, and if the acting Chair's seniority changes, the new most senior appointee must assume the role of acting Chair. This is clearly outlined in sections (1) to (5), ensuring a seamless transition and continuity in the leadership of APRA during the Chair's absence or incapacity. Failure to comply with the provisions of this instrument may result in legal consequences. While the specific offences and penalties are not detailed in the text, it is implied that breaches of the appointment arrangements could lead to legal actions, given the critical nature of the role of the Chair of APRA. The maximum penalties for such breaches would likely be determined by the Australian Prudential Regulation Authority Act 1998 or relevant legislation governing administrative law and public office appointments. These penalties could include fines or other civil remedies for non-compliance, and potentially criminal charges if the breach is deemed serious enough to warrant such action.