Australian Securities and Investments Commission (Standing Acting Arrangement for Chairperson) Appointment 2020

Overview

The Australian Securities and Investments Commission (Standing Acting Arrangement for Chairperson) Appointment 2020 (F2020N00124) was enacted in 2020 by the Treasurer, Josh Frydenberg, under section 117 of the Australian Securities and Investments Commission Act 2001. This legislation was introduced to address the need for a standing acting arrangement to ensure continuity in the leadership of the Australian Securities and Investments Commission (ASIC) during periods when the Chairperson is absent from office. The policy objective of this notifiable instrument is to maintain the effective functioning and stability of ASIC by providing a clear framework for the acting arrangements when the Chairperson is not available. The enacting body for this instrument is the Parliament of Australia, which has the authority to make such appointments under the relevant Act. This legislative instrument revokes all previous appointments made under section 117 of the ASIC Act and appoints Karen Chester, a member of ASIC, to act as Chairperson during any such absences.

Scope and Application

The Australian Securities and Investments Commission (Standing Acting Arrangement for Chairperson) Appointment 2020 provides for the appointment of a standing acting chairperson to oversee the activities of the Australian Securities and Investments Commission (ASIC) in the absence of the official chairperson. This instrument applies to the members of ASIC, specifically designating Karen Chester as the acting chairperson in the event that the official chairperson is unavailable. Geographically, this arrangement applies within the Commonwealth of Australia and is in line with the provisions stipulated in the Australian Securities and Investments Commission Act 2001. The instrument revokes all prior appointments made under the same section, ensuring that only the most recent standing acting arrangement is in effect. The commencement of this instrument is immediate upon its creation, providing a clear and uninterrupted line of authority within ASIC.

Key Provisions

This notifiable instrument, F2020N00124, made by the Treasurer under section 117 of the Australian Securities and Investments Commission Act 2001, primarily focuses on the appointment of a standing acting Chairperson for the Australian Securities and Investments Commission (ASIC). Specifically, section 1 of the instrument revokes all previous appointments made under the same provision of the Act, effectively clearing the way for the new appointment to take precedence (s 1(1)). Section 2 of the instrument appoints Karen Chester, a current member of ASIC, to act as the Chairperson during any period when the actual Chairperson is unable to perform their duties (s 2(2)). This appointment ensures continuity of leadership within ASIC and is designed to maintain the regulatory oversight and administration of financial markets and entities in Australia. The instrument comes into effect immediately upon its creation, as stated in section 3 (s 3). Under the provisions of this instrument, Karen Chester assumes the responsibilities and authorities of the Chairperson of ASIC during their absence. This includes decision-making, management of the Commission, and oversight of investigations and enforcement actions as necessary. The instrument clarifies that this acting role is limited to periods when the Chairperson is absent, ensuring that the acting Chairperson does not exceed their designated scope of authority. Additionally, the instrument mandates that all actions taken by the acting Chairperson during their tenure must comply with the existing policies and legal frameworks governing ASIC's operations. The instrument also outlines the consequences for non-compliance with its provisions. While the specific penalties for breach are not detailed within the instrument itself, it operates under the broader legal framework of the Australian Securities and Investments Commission Act 2001. Typically, breaches of such administrative instruments can lead to civil or criminal penalties, depending on the nature and severity of the violation. For instance, individuals or entities found in breach of ASIC's regulatory requirements may face fines, legal action, or other administrative penalties. The exact penalties would be determined by the relevant courts or tribunals in accordance with the overarching legislative provisions and any applicable guidelines or precedents.