Australian Securities and Investments Commission (Standing Acting Arrangements for Chairperson) Appointment 2019

Overview

The Australian Securities and Investments Commission (Standing Acting Arrangements for Chairperson) Appointment 2019 was enacted to address the need for a clear succession plan in the event that the Chairperson of the Australian Securities and Investments Commission (ASIC) is absent from office. This notifiable instrument, made by the Treasurer, Josh Frydenberg, under section 117 of the Australian Securities and Investments Commission Act 2001, revokes all previous appointments and establishes a new order of seniority for acting Chairpersons. The intent is to ensure that there is no gap in leadership at ASIC, thereby maintaining regulatory continuity and stability. The instrument names specific members of ASIC who will act as Chairperson in a prioritised order of seniority, ensuring that the most senior available member will step into the role seamlessly during any period of absence by the official Chairperson. This instrument is designed to maintain the effectiveness and authority of ASIC in the enforcement of financial services and consumer credit laws, as well as the regulation of financial markets and superannuation.

Scope and Application

The Australian Securities and Investments Commission (Standing Acting Arrangements for Chairperson) Appointment 2019 is an instrument made under section 117 of the Australian Securities and Investments Commission Act 2001. It revokes all previous appointments made under this section and establishes a new framework for the appointment of an acting Chairperson of the Australian Securities and Investments Commission (ASIC) during any period when the Chairperson is absent from office. The instrument applies to the person or persons appointed as the acting Chairperson of ASIC, with a defined hierarchy based on seniority among specified members of ASIC. The geographic or jurisdictional reach of this instrument is national, as it pertains to the operations of ASIC, which is a Commonwealth entity. This instrument does not specify exclusions, exemptions, or thresholds, but it does establish a clear process for the appointment of an acting Chairperson, ensuring continuity in the leadership of ASIC in the absence of the Chairperson. The instrument also allows for the possibility of subordinate instruments or regulations that may further detail the specific responsibilities and limitations of the acting Chairperson.

Key Provisions

The Australian Securities and Investments Commission (Standing Acting Arrangements for Chairperson) Appointment 2019 (the "Instrument") primarily serves to establish the protocol for acting Chairpersons of the Australian Securities and Investments Commission (ASIC) when the designated Chairperson is unavailable. Section (1) revokes all prior appointments made under section 117 of the Australian Securities and Investments Commission Act 2001. Section (2) establishes a new appointment for the acting Chairperson role during the Chairperson's absence. The appointment is determined by a hierarchy outlined in sections (3) to (5), which specifies the order of seniority among specific individuals: Daniel Crennan, Karen Chester, John Price, Cathie Armour, Danielle Press, and Sean Hughes. The Instrument imposes specific obligations on the acting Chairpersons and the individuals involved. According to section (3), the senior available appointee, based on the list provided in section (3), must be a member of ASIC and currently not absent from office. Section (4) mandates that the senior available appointee at the beginning of the Chairperson's absence must assume the role of acting Chairperson for the duration of the absence. If the acting Chairperson ceases to be the senior available appointee at any point during the absence, section (5) requires the next highest individual in the seniority list to take over as acting Chairperson for the remainder of that period. Breaches of the provisions outlined in the Instrument could lead to significant consequences, although the exact nature of these consequences is not detailed within the text of the Instrument itself. Generally, failure to comply with the requirements for appointing an acting Chairperson during the Chairperson's absence could potentially result in legal and administrative repercussions. The exact penalties or consequences for non-compliance are not specified within the text of the Instrument, but they could include civil or criminal liability, depending on the nature and extent of the breach. The maximum penalties for such breaches, if applicable, would be determined by the relevant legislative provisions and the courts. This Instrument commences on the day it is registered on the Federal Register of Legislation, as stated in section (6).